GUNDLACH: My favorite stock market is on fire

Jeff Gundlach, founder and chief executive officer of Doubleline Capital, named India as his "favorite stock market," urging investors to look for opportunities in emerging markets and Europe.

"My favorite stock market India that I've been touting now for years, is doing great this year," Gundlach told CNBC's Scott Wapner on Fast Money's Half-Time Report on Wednesday.

Back in January, Gundlach suggested that investors should look at India and Japan.

"I love it when something has underperformed for a very long time like EEM and then starts to quietly start outperforming," he said. "It's really a great time because you're not catching a falling knife you've got a very cheap valuation and its already sort of working with a tailwind."

Indian markets have rallied 14% this year, becoming the best-performing major market, despite analysts warning about lofty valuations. The Sensex has rallied over 240% since the 2008 financial crisis.

The Sensex dropped 6.5% in the weeks after the November 8, 2016, demonetization of the rupee by the Narendra Modi-led government, but recovered those losses within a couple of months.

Gundlach's call on India is in line with that of Indian billionaire investor Rakesh Jhunjhunwala, who is "extremely bullish" on Indian stocks.