India, Aug. 2 -- Foreign portfolio investors (FPIs) turned net sellers in the Indian equity market in July, with a total outflow of Rs -17,741 crore, according to data released by NSDL. This marks the first month of negative investment by FPIs after three consecutive months of positive inflows during April, May, and June.

The sharp reversal in sentiment was driven by a sudden surge in selling during the last week of July. Between 28 July and 1 August, foreign investors pulled out Rs 17,390.6 crore from Indian equities, which significantly impacted the overall monthly numbers and pushed July's investment into negative territory.

The recent selling pressure is largely due to the fresh reciprocal tariffs imposed by the United States, which...