When a diamagnetic material is placed in magnetic field, dipole moment are induced in its atoms by the applied magnetic field. The direction of magnetic field due to induced dipole moment is opposite to the applied magnetic field therefore the resultant magnetic field is smaller than the applied magnetic field. This process is called diamagnetism. As this process takes place for all the material, therefore all the material exhibit diamagnetism. However, some material consists of atoms having some magnetic moment on their own (without applying magnetic field). As a result of it, when they are placed in magnetic field, they aligns their atomic dipole in the direction of applied magnetic field and hence their resultant magnetic field is more then the applied magnetic field and exhibit paramagnetism or ferromagnetism.