The stock market is a complex ecosystem teeming with various participants. Among them, institutional investors wield significant power, influencing everything from the HDFC Bank share price to the overall market direction. But who exactly are these institutional investors, and how do their actions impact individual stocks and the market as a whole?

Who are Institutional Investors?

Imagine a giant pool of money accumulated from millions of individuals. Institutional investors are entities that manage these funds, investing them in various financial instruments like stocks, bonds, and derivatives. Pension funds, mutual funds, insurance companies, hedge funds, and sovereign wealth funds fall under this umbrella. Due to the sheer volume of capital they manage, institutional investors are major players in the stock market, directly impacting the HDFC Bank share price and countless others.

Heavyweights with Big Decisions

Institutional investors don’t make impulsive choices. Their investment decisions are based on rigorous analysis, considering factors …