Risk and uncertainties are synonymous to investment in the stock market. Evaluating equities or equity market is open-ended terminology in the financial market. This is a debatable issue among economist and investors. Valuation of equity ultimately depends on one’s own perceptions on evolving variables of a country. An investor has to make an apt decision on buying or selling of the shares by examining various financial indicators in the market which influence the market index. The present study makes an attempt to examine the relationship between the market price and selected four variables namely EPS, priceearnings ratio, price to book ratio, and dividend yield in BSE sensex. Understanding the impact of various financial indicators on market price index is very much fruitful to investors as it will help them in making profitable investment decisions. The necessary information is collected by using PROWESS online database provided by the Centre for Monitoring Indian Economy (CMIE). The tenure considered in study is twelve years i.e. 2000-2012. The scope of the study is confined only to selected explanatory variables in BSE sensex. Correlation, regression, and ANOVA are used for analyzing the relationship between the market price and selected independent. The finding suggests that Earning per Share (EPS) and Price to book Value (P/B) are behaving as a significant factor at 0.05 level of significance. Moreover, other independent variables such as Price Earnings ratio (P/E) and Dividend Yield (Yield) seems to be statistically insignificant in explaining the market price index.