Institutional investors’ stock trades result in a stock’s price moving up or down dramatically.
Institutional investors include mutual funds, FIIs, domestic financial institutions, pension funds, banks and other financial institutions that trade in stocks in bulk on a daily basis. In fact, institutions account for a massive chunk of all trading activity. Clearly, this implies that when institutions target a stock for purchase, it's more likely to go up in price thanks to the increased demand they create.
Institutions make a living buying and selling stocks. They employ analysts, researchers and other specialists to gather comprehensive information about companies. They meet with executives, evaluate industry conditions and study the outlook for every company they plan to invest in.