Search for 'value' gets tougher for market investors

High valuation making it difficult to identify new opportunities, say experts

The market has moved up significantly in the past year, with the benchmark BSE Sensex gaining 16 per cent. The rally has largely been driven by global liquidity and on expectations that earnings back home will pick up in the coming quarters. At a one-year trailing price-to-earnings multiple (P/E) of 22.8, the Sensex is still trading above its historical average.

It's a difficult terrain for value investors. Should they use the intermittent corrections as buying opportunities or stay on the sidelines?

"We are seeing a situation where the pace in growth in earnings has been quite subdued, whereas the growth