Research in India has explored the causal relationships among these variables. Shahid (2008) explored money supply, exchange rates, exports, foreign direct investment, interest rates and equity prices for a period of twelve years from March 1995 to March 2007 by using co-integration analysis with quarterly data. In connection with the literature reviewed, both long-run and short-run relationships are investigated in this study. The researcher concluded that the economic activities and interest rate lead the equity prices.