This study investigates the effects of macroeconomic factors such as inflation, gross domestic product, exchange rate, long-term and short-term interest rates and unemployment rate on equity investments in India. In order to measure the performance of equity investments the two most popular indices were used i.e., SENSEX and NIFTY. Stepwise multiple regression analysis is used to predict the SENSEX and NIFTY closing price. Expert Modeler is used to forecast the significant variables under study. Projection of these variables can help the investors to make effective investment decisions as well help the government in designing policies to encourage more investment inflow.