NEW YORK ( TheStreet) -- As the second fastest growing economy, India presents a vast potential for overseas investments. U.S. investors can invest in India through American Depositary Receipts (ADRs). An upsurge in overseas investments recently drove the benchmark Sensex to around the 21,000 level for the first time since early 2008.

It is not the end of the road for investors who missed the Indian Equities rally -- Sensex up over 20% during the last six month -- without considering the recent correction of 8% from the present highs. Post-correction, it could be a good time to venture into Indian equities. The benchmark index is trading at 16 times one-year forward earnings and the International Monetary Fund foresees India's economy growing at 9.7% in 2010 and 8.4% in 2011, well above the estimated U.S. growth of 2.7% and 2.2%, respectively, for the same period. Robust macro fundamentals along with a benign inflation, which is estimated to spiral down from 13.2% in 2010 to 6.7% by 2012, is also good news.

The Indian market is looking attractive and global investors can accumulate quality stocks in the near term. We have identified a list of ADRs that appear lucrative after the present bout of correction. The three ADRs looking attractive are HDFC Bank ( HDB), ICICI Bank ( IBN), and Sterlite Industries ( SLT).

However, not every segment is looking attractive. We have identified some investments that are expensive, from where existing investors can pare respective exposure. The list includes MTNL ( MTE), Tata Communications ( TCL), and Infosys Technologies ( INFY).

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