Investors are turning more bullish on Indian stocks — which have underperformed other emerging markets over the last year — as the recent correction in valuations and more promising macro conditions make it look more attractive relative to peers. Anand Gupta, the lead portfolio manager of Allianz Global Investors, told CNBC's "Inside India" Wednesday that he currently has a "very constructive stance on Indian equities." He pointed to a more than 10% compound annual earnings growth for Indian equities and 6% GDP growth over the past decade, saying those trends will not just continue but "accelerate" as domestic consumption picks up. Gupta also said India's price-to-earnings growth ratio is now closer to China and other Asian markets. "This hasn't happened in [the] last 10 years," he added.

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