Sensex, Nifty extend gains; midcaps underperform

The market breadth, indicating the overall health of the market was strong

The benchmark indices continued to trade higher after European markets opened in green, although investors remained cautious ahead of the earnings season for December quarter. 

Sentiment on the Street was subdued as investors awaited Budget 2017, scheduled on February 1, and caution ahead of key global events such as Donald Trump's swearing-in as US president later this month, also prevailed.

At 02:00 pm, the S&P BSE Sensex was trading at 26,884, up 158 points, while the broader Nifty50 was ruling at 8,278, up 43 points. 

In the broader market, the BSE Midcap index underperformed the headline indices and BSE Smallcap.