Exchange traded funds tracking Indian equities have recently shown faint signs of perking up, but much of that good work has been undone by Thursday’s slide in U.S. stocks, which pressured emerging world equities.

India, Asia’s third-largest economy, has been hampered by an array of macroeconomic factors this year, including a plunging rupee, still problematic inflation and a widening current account deficit. The rupee is one of the worst-performing emerging markets currencies against the U.S. dollar this year. Given those factors, it is not surprising that institutional investors have a mixed view on some of the country’s most widely held stocks. [Rupee’s Plunge Could Affect Several ETFs]

As Barron’s reports, Morgan Stanley compiled a list of Indian equities that institutional investors hold bullish and bearish views on. State Bank of India, Tata Steel, Bharat Heavy Electricals and Jaiprakash Associates are among the names investors are less than enthusiastic, Barron’s reports, citing Morgan Stanley.

Indian stocks favored by institutional investors include Tata Motors (NYSE: TTM), Tata Consultancy, Lupin, HCLT and ITC. There is some good news for investors in beaten-up India ETFs such as the WisdomTree India Earnings ETF (NYSEArca: EPI). EPI, the largest India ETF, holds scant exposure to State Bank of India, Tata Steel, Bharat Heavy Electricals and Jaiprakash Associates. Those stocks combine for just 3.5% of EPI’s weight. The four combine for about 4% of the iShares India 50 ETF (NasdaqGS: INDY). [India ETFs: A Train Wreck Awaits]

The better news is that both ETFs are more exposed to the names that Morgan Stanley says professional investors hold favorable views of. Tata Motors, Tata Consultancy, Lupin, HCLT and ITC combine for 12.5% of EPI’s weight. Tata Motors and Tata Consultancy are the ETF’s fourth- and sixth-largest holdings, respectively.

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