Mumbai, Feb 9 (IANS): Sharp selling was seen in the broader domestic market on Friday on account of the rise in crude oil prices and muted global cues amid the Lunar New Year holiday in Asian markets, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

The BSE Sensex ended higher by 167.06 points or 0.23 per cent at 71,595.49 on Friday, while the Nifty 50 closed at 21,782.50, up 64.55 points or 0.3 per cent.

The mid and smallcaps had witnessed strong rallies over the past few months, thus making valuations a little stretched, Khemka said.

However, buying was seen in largecaps where there is still some comfort.

Sector-wise, it was a mixed bag with buying seen in banking, financial and pharma stocks, he said.

A mixed set of results and a sharp run-up in PSUs over the past months led to profit booking in this counter. Further, early diminishing hopes of early rate cuts too dampened the sentiments, he said.

Vinod Nair, Head of Research at Geojit Financial Services, said that after a volatile session, the market ended on a positive note, aided by a rebound in banking stocks after Thursday's sell-off.

Mid and smallcap indices bled the most as the sentiment on the broader indices remains vigilant due to their rich valuation. Caution prevails in the market ahead of the release of US, UK, and Indian inflation data next week, while the US 10-year yield is inching higher.