Foreign Portfolio Investors (FPIs) invested more than Rs 20,400 crore in the Indian capital market for the first half of March driven mainly by positive global cues.

Analysts say that the expectation of a positive outcome of the talks between US and China over their trade deal and the American Federal Reserve's decision to keep the interest rate hikes on hold has worked in the favour of the emerging markets.

The rise in investment from foreign investors was also seen in February when they bet on beaten-down stocks like those in the banking and finance sectors. In the previous month, FPIs were net buyers as they had invested a net amount of Rs 11,182 crore in the capital markets that include both equity as well as debt segment.

The data with the depositories as of 15 March shows that net inflow in the equities were at Rs 17,919 crore, while the debt market saw an infusion of Rs 2,499 crore on a net basis between 1 and 15 March. Collectively, it translates into a net investment of Rs 20,418 crore in the country's capital markets for the first half of March 2019.

Analysts however warn that political uncertainty and concerns of economic slow down may come into play as the country draws closer to the General Assembly Elections.