New Delhi, May 14 -- The Nifty Smallcap 100 index has largely held its ground in May so far, building on the over 18% rally seen last month, and is on the cusp of entering the bull market. Any stock or index is said to be in a bull market after it runs up 20% or more in a short span.

What's remarkable is the timing of this rise. The Middle East war rages on, driving crude oil prices higher and the rupee to record low levels. The benchmark indices have borne the brunt of selling, but investor interest in small-cap stocks remains strong.

The Amfi numbers for the last few months clearly establish this trend. Last month, small-cap funds drew Rs.6,562 crore of inflows, while mid-cap funds attracted Rs.6,886 crore - record highs for both cate...