New Delhi, May 15 -- Small-cap stocks are currently at the forefront of the Indian stock market's latest bull run, which resumed this week following a double boost - the Indo-Pakistan ceasefire and an easing of tensions in the US-China tariff conflict.

Retail investors' favourite segment has historically outperformed both mid- and large-cap stocks during sustained rallies. The segment, which faced a severe beating between October and February due to concerns over expensive valuations, has seen a sharp recovery in the last two months amid improved March quarter performance and expectations of an earnings revival in the current fiscal year.

Even though valuations for some counters - especially in the defence sector-remain elevated, they c...