Is it the time right to start investing in small and mid cap stocks?

You are asking on Market timing. There are two schools of thought around it. One believes that there is an equilibrium around which the stock prices swing. Then there is another modern view of 'active investing' where they don't consider there is any such equilibriums but changes in human behavior or risk aversion or risk apetite which determine the price. Both schools create their own strategies and both tend to make alpha returns that is returns above some benchmark.

Present time might be good for investing since our coporates it seems have started investing, look at Sesa Goa ans similar investments taking shape.

yes this is right time till it hits 18000. in my view it cant go beyond that. 13000 is too low. it will oscillate from 11000 to 17000 fror six months at least till market actually show some sign of growth.

Yes. Good midcaps and small caps are still undervalued and catch up with valuations the large caps have reached even after the run from 8000 to 13000.But one has to exercise caution in choosing the right ones which are also fundamentally sound and growth stories in them.