The Indian rupee has firmed up and stocks have soared on strong sentiment since September

Indias benchmark BSE index surged to new a record last week, with India stocks continuing to show strength as the country dramatically turns around from a crisis of confidence just a few months ago.

Since the beginning of September, the iShares MSCI India ETF (INDA ) has gained 20%. The PowerShares India Portfolio  (PIN ), iShares S&P India Nifty 50 ETF  (INDY ) and WisdomTree India Earnings Fund  (EPI ) are other India ETF options are up roughly the same amount in contrast to gains of just 7% for the S&P 500 in the same period.

The trouble for India stocks earlier in the year was a lack of confidence in the countrys currency. Specifically, the rupee hit record lows after its biggest one-day decline in 20 years and threatened to spark widespread inflation. Heaping trouble onto India ETFs and major stocks in the country was the threat of military action against Syria, pushing the price of oil higher.

But thanks to a resolution regarding Syrias chemical weapons and steps by a new central bank leader to shore up the rupee, India stocks have stabilized and even moved significantly higher.

So should you buy an India ETF?

Well, maybe not. The snapback rally has been nice, but much of those gains will not be recreated since the move in Indian stocks and India ETFs has largely come thanks to sentiment and confidence.

As one India stock trader told Reuters :

I am not too pleased with the way fundamentals are shaping up. This new high is driven by only a handful of stocks which are hopelessly expensive, despite fundamentals, said fund manager Phani Sekhar at Angel Broking.

The liquidity rush is making people accumulate stocks. If fundamentals dont improve or liquidity tapers, then this rally wont have many legs.

But if you want to take a flier on the region on hopes that sentiment will continue to firm up and a sustainable recovery follows, consider India ETF investing as your best bet.

There arent a ton of India stocks that trade domestically as ADRs for investors in U.S. markets. And one top India stock Infosys (INFY ) has been in the news for trouble regarding work visas.

Tread lightly in India but if you do want to trade, consider an ETF.

More on India ETF Investing

Jeff Reeves  is the editor of InvestorPlace.com and the author of  The Frugal Investor’s Guide to Finding Great Stocks.  Write him at  editor@investorplace.com  or follow him on Twitter via  @JeffReevesIP . As of this writing, he did not own a position in any of the stocks named here.