New Delhi: Overseas investors pumped in more than 19,000 crore ($3.5 billion) in the Indian stock market in September, the highest monthly inflow in seven months, on account of bold economic reform initiatives taken by the government.

Thus, FII investment in the country's equity market has reached 82,331 crore ($15.85 billion) so far this year, and 25,140 crore ($5 billion) in the debt market during the same period.

In September, Foreign Institutional Investors (FIIs) were gross buyers of shares worth 66,752 crore, while they sold equities amounting to 47,491 crore translating into a net inflow of 19,261 crore ($3.56 billion), according to the data available with the market regulator Sebi.

This was the highest net investment by FIIs in stocks since February, when they had infused 25,212 crore. Besides, FIIs had infused 10,804 crore in August and 10,273 crore in July.

Market experts said the month of September has seen extraordinary amount of FII flows on several tough economic decisions including opening up FDI in retail and aviation sectors, capping up of cooking gas subsidy and hike diesel prices, taken by the government.

"FII inflows was driven by policy reforms announced by the government and I think they will continue to invest in the domestic equity market in next six to eight months as well on further reforms in sectors like insurance and pharma," Wellindia Vice President Research Vivek Negi said

Another market analyst, Destimoney Securities MD and CEO Sudip Bandhopadhyay said,"The overall sentiment with regards to growth has enhanced the FII flows. Besides, foreign investors have also got support from easing of monetary policy by the US Federal Reserve."

Apart from equity, FIIs also invested 622 crore in the debt market in the current month.

The strong FII inflows have pushed the BSE's benchmark Sensex by 1,382 points or eight per cent to settle at 18,762.74 points on September 28.

As on September 28, the number of registered FIIs in the country stood at 1,753 and total number of sub-accounts were 6,325 during the same period.