They found positive relationship between Sensex and selected macroeconomic variables. Kessel (1956) suggests that firm equity increases with an unexpected increase in inflation. Boudhouch and Richarson (1993), Firth (1979), Gultekin (1983) and Akmal (2007) also find a positive relationship between equity prices and inflation. Using data from 1985 to 2003, Ioannidis et al. (2005) uncover a positive relationship between