Mid-and small-cap stocks outperformed on Wednesday, driven by better than estimated growth in earnings and moderation in valuation.

The 30-share BSE Sensex climbed 260.74 points to settle at 80,998.25. The NSE Nifty went up 77.70 points to 24,620.20.

FIIs, and DIIs bought equities worth Rs 1,076.18 crore, and Rs 2,566.82 crore, respectively.

“The domestic market traded in a narrow range with a mildly positive bias, supported by favourable global cues such as strong US job data and signs of easing US-China trade tensions. Mid-and small-cap stocks outperformed, driven by better than estimated earnings growth and moderation in valuation. Investors await the outcome of RBI’s MPC meeting, to be announced on Friday, with expectations of a rate cut and clarity on the future growth and inflation forecast,” Vinod Nair, head of research at Geojit Investments, said.

“The strong fundamental factors that will support the market include India’s robust and improving macros and sustained flows into mutual funds, particularly the SIP inflows which are steady and growing. This reflects the coming of age of the Indian retail investor. Since CPI inflation in India is benign, the rate cutting cycle has more room to go with minimum two more rate cuts in 2025,” Dr VK Vijayakumar, a veteran investment strategist, said.