The present study examines the fundamental determinants of share price in India.\r\nThe study employs panel data consisting of annual time series data over the period\r\n2006-2011 and cross-section data pertaining to 6 major sectors of the Indian\r\neconomy, namely, Heavy and Manufacturing, Pharmaceutical, Energy, IT and\r\nITES, Infrastructure and Banking. The panel data techniques, viz. Fixed Effects\r\nmodel and Random Effects model have been employed to investigate the objective.\r\nThe empirical results reveal that the dividend per share has a negative and\r\nsignificant impact on the share price of manufacturing, pharmaceutical, energy and\r\ninfrastructure sectors. These results are consistent with findings of Zahir and\r\nKhanna (1982), Malhotra (1987) and Sharma (2011), that dividend has\r\ninfluenced market price of share significantly in negative direction. The evidences\r\nshow that earning per share and price-earnings ratio are being the crucial\r\ndeterminants of share prices of manufacturing, pharmaceutical sector, energy,\r\ninfrastructure and commercial banking sectors. The findings indicate that size is\r\nbeing a significant factor in determining the share prices of all sectors under\r\nconsideration except manufacturing. Moreover, the book value per share positively\r\ninfluences the share prices of pharmaceutical, energy, IT & ITES and Infrastructure. The present study confirms that performance of the fundamental\r\nratios of the industry will be essential and immense helpful to investors and analysts\r\nin assessing the better stocks that belong to different industry groups.\r\n