Mutual Funds cut energy, IT bets in July, bought financial stocks

They bought financial services, industrials and consumer discretionary stocks

Mutual funds (MFs) allocated a smaller share of their capital to the information technology, energy, and telecommunications sectors in July.

The benchmark S&P BSE Sensex, movements of which are seen to be a broad representation of market direction, was up 8.6 per cent to end July at 57,570.25. The three sectors mentioned above saw their MF allocations drop between 20 basis points and 75 basis points last month, shows data from tracker primemfdatabase.com. 

Financial services, industrials and consumer discretionary stocks, on the other hand, saw higher allocations -- 15-100 basis points. 

These sectors outperformed the Sensex: the S&P BSE Bankex was