How much one currency is worth in relation to another is shown by the exchange rate. Understanding the relative values of different currencies is crucial for comprehending the dynamics of trade and capital flows. It is widely believed that a country's financial and economic health can be accurately predicted by looking at the performance of the stock market. Since the 1980s, investors, decision-makers, financial analysts, and economists have paid more and more attention to the changing relationship between macroeconomic indicators and stock prices. One of the most significant macroeconomic indicators is the exchange rate. This study aims to investigate the impact of Exchange Rate on the Indian Stock Market's SENSEX and NIFTY 50 indices. Our country's exchange rate is measured against the US dollar. The last ten years, or from 2012 to 2022, have seen the collection of data from a variety of secondary sources, including websites run by the government, NSO, and CEIC. The degree of a relationship and the degree to which variables are aligned with the trend line or the line of best fit can be displayed using a scatter plot. The analysis's findings show that the exchange rate and a few selected macroeconomic indices have a substantial correlation. The study's conclusions would aid investors and traders in making informed decisions.

KEYWORDS: NIFTY, SENSEX, Exchange Rate, Macroeconomics, Stock Market.