Foreign funds are getting excited about the local market due to the higher valuation in the vast market rally. Their holdings in the local equities grew to $630 billion in August. The market rose the most in August, scoring multiple new records by the retail investors and private funds, whose investments are now high.

The foreign investments, which set a record high of over $37 billion in FY21, have reached $7.2 billion. Foreign Portfolio Investors (FPIs) have born a margin of $281 million net inflows as against $1.5 billion in July, according to Bank of America India Securities.

“The value of FII’s equity exposure is at $630 billion in August after their net investment turned positive at $281 million,” BofA said in a report. Of the $630 billion assets under management, FII holdings are into financials, IT is at 4.9 per cent each, energy at 13.5 per cent, utilities at 2.7 per cent, industrials at 5.5 per cent, and discretionary at 9 per cent. Meanwhile, the private funds pumped $3.9 billion after a record $5.6 billion in July, the highest in two years.