The world has been focusing on Inflation and how it has affected all the sections of economies from consumption, investment in the business, rate of employment, stock market, etc. The relationship between inflation and the Nifty 50 and the Sensex performance of the stock market is the primary concern of this paper. The current study analyses the stock market and its volatility for the duration of 2010–2022. As inflation rises the volatility of the stock also varies. The value of stocks performs better during a rise in inflation and stocks give better results during less inflation. It is crucial to understand that if inflation rates are very high, the purchasing power can reduce drastically in the economy. However, should inflation rates remain too low, the economy's expansion could face impediments. Investors must therefore examine recent inflation rates to see if the rise is abrupt or steady. The present research relies on a thorough extensive literature review and the analysis of secondary data sourced from various published reports. Trend analysis, correlation test, and regression analysis are performed to analyze the impact of inflation on the stock market volatility in Nifty 50 and Sensex. The finding of the paper provides evidence that during the pandemic, the inflationary pressure led to stock market volatility and further the regression result shows inflation had impacted the Sensex returns negatively. The stringent strategies on financial policy and tightening monetary policy can keep inflation under the tolerable limit making it stable for the economy. Investors would thus have confidence in their returns and be motivated to invest in the future leading to economic growth.