Mumbai, March 17 -- Amid the ongoing correction in the domestic stock markets, investors have an opportunity to rebalance their portfolios by adding quality stocks and exiting overvalued ones, according to a report by Kotak Institutional Equities.

The report said that the recent correction in stock prices, triggered by the ongoing conflict between Iran and the US-Israel, has led to dislocations across segments of the market, creating opportunities for investors.

"We see the recent correction in the market and stock prices due to the ongoing conflict between Iran and Israel-US and resultant dislocations in stock prices as an opportunity to (1) add 'better' stocks, (2) remove 'narrative' stocks and (3) reduce positions in expensive cement...