New Delhi, July 7 -- The Indian stock market witnessed a reversal in overseas investor activity in early July, as the lack of clarity surrounding the India-US trade deal, stretched valuations, and global trade uncertainty with reciprocal tariffs expected to take effect weighed on FPI sentiment.

After remaining net buyers in the Indian stock market over the last three months, FPIs pulled out Rs.5,772 crore in the first four trading sessions of July, remaining net sellers on each day. In June, they invested Rs.7,488 crore, and in May and April, they bought Rs.19,686 crore and Rs.4,223 crore worth of Indian stocks through the exchanges, respectively.

Though FPIs invested over Rs.31,000 crore between April and June, the aggressive selling d...