Are DII Obliged to Buy When FII Sell?

We usually see the DIIs covers for selloff done by FIIs. Are DIIs obliged to buy? If they are then isn’t there investment decision controlled by FIIs? I want someone to explain how this work?

No one, DII, FII, or Retail is obliged to do anything in stock market. Each one buy or sell based on their own specific strategy. There is no correlation. The price of a stock is purely demand / supply equation. If there is no one to buy, the stock will fall until someone will buy. Hence on occasions you will have a case where there are only buyers or sellers. I experienced this with Yes Bank when RBI had declared a moratorium. During those days there were only sellers and not a single buyer.

Only LIC (DII) is obliged to buy, I guess.