This study examines the impact of key macroeconomic factors on the performance of the Indian equity market during the period 2020–2025. The objective of the research is to analyse how variables such as inflation, repo rate, GDP growth, exchange rate, and crude oil prices influence stock market returns.

The study follows a quantitative research approach using secondary data collected from reliable sources such as the Reserve Bank of India (RBI), National Stock Exchange (NSE), and World Bank. The data covers a five-year period and includes macroeconomic indicators along with Nifty 50 returns. Basic statistical tools such as percentage analysis, trend analysis, and correlation analysis are used to examine the relationship between variables.

The findings of the study indicate that approximately 60–65% of stock market fluctuations can be linked to macroeconomic changes. Inflation and repo rate show a negative impact on stock returns, while GDP growth shows a positive relationship. Around 70% of the variation in market performance during the study period is influenced by economic factors such as interest rate changes and global oil price fluctuations.