Shortly after the Federal Reserve Board proclaimed a variant of QE Infinity in late 2012, emerging market equities have been in a free fall. And after all the Fed taper talk began in late spring, emerging market bonds have joined the funeral parade in sympathy.

At this point, DoubleLine CEO Jeffrey Gundlach can't help but wonder if some emerging markets investors aren't "getting carried out in body bags." And many wise men, including Bridgewater Associates CEO Ray Dalio, have speculated that the global economy could be facing an emerging markets' financial crisis.

Gundlach told clients on a webcast that he respected Dalio but wasn't so sure about a widespread emerging markets crisis. However, Gundlach added he was very bearish on India in particular.

The severity of problems in emerging markets is revealed by a stark fact: Suddenly, developed markets have taken the baton from developing economies as the global economy's leading growth engine. That is quite a statement given that only two economies among 20 developed nations have seen their GDP surpass pre-crisis levels. And the U.S. (4 percent ahead of late 2007 growth rates) and Germany (2 percent ahead) are hardly setting the planet on fire.

Gundlach told investors that while he thinks India could be facing a crisis, China and Russia may not be confronted with the same predicament. That's because India has been relying on foreign capital to finance huge budget deficits. Funny thing about democracies.

Those foreign capital inflows to India appear to be turning into capital flight, even if the Indian stock market has rallied in recent days. "It still looks scary," Gundlach said.

India's currency, the rupee, is under severe pressure. This means that Indians' favorite commodity, gold, hasn't declined in rupee terms the way it has in dollars. Perhaps more significantly, the price of oil has climbed dramatically for Indian consumers and businesses.

Other emerging markets look better. With a huge trade surplus and a 5 percent national savings rate, China needs foreign capital like Bill Gates needs a loan.

The Shanghai equity index, down 30 percent since 2010, has started to rally recently. On an even more positive note, Gundlach pointed out the Chinese stock market is displaying a double bottom.

Russian stocks are understandably cheap, given the chronic corruption and cronyism pervading their economy. One possible trade: Go long China and/or Russia and short India and/or other emerging markets.