The stock market constitutes a vital pillar of the modern financial system and plays a decisive role in mobilizing savings, facilitating capital formation, and supporting long-term economic growth. Stock prices are widely regarded as forward-looking indicators because they incorporate investors’ expectations about future corporate earnings, macroeconomic stability, and policy direction (Fama, 1981; Chen, Roll & Ross, 1986; Mishkin, 2019). Consequently, fluctuations in stock market performance are closely associated with changes in the macroeconomic environment. Over the decades, substantial theoretical and empirical research has examined the relationship between macroeconomic variables and stock market behavior, including inflation (Boudoukh & Richardson, 1993), interest rates (Thorbecke, 1997), gold prices (Baur & Lucey, 2010), foreign exchange reserves (Aizenman & Lee, 2007), exchange rates (Aggarwal, 2014), and foreign institutional investments (Clark & Berko, 1997). This paper synthesizes existing literature and incorporates real-world data to demonstrate the influence of these variables on stock market performance. The study emphasizes conceptual depth, theoretical integration, and interpretative understanding. It provides a structured review of the mechanisms through which macroeconomic variables affect stock prices, such as changes in corporate profitability, liquidity conditions, risk perception, and investor sentiment. Authentic data from India, including foreign exchange reserves reaching USD 701.36 billion (Times of India, 2026a) and FII flows influencing Sensex and Nifty indices (Times of India, 2026b), illustrates the practical impact of macroeconomic fluctuations. This approach offers a comprehensive resource for students, researchers, investors, and policymakers.