The article presents expected equity returns for the Indian stock market, using two methods to calculate them. The Capital Asset Pricing Model (CAPM) and the risk premium approach were used, with the CAPM showing the market's ability to outperform expectations. The average expected returns are 13.47%, while the market index returns average at 16.46%. The cost of equity for sample companies is around 14%. The Indian stock market is seen as an attractive investment for both long-term and short-term traders, but investing for the long run may be more prudent due to short-term volatility. This study is one of the first to compute expected returns for the Indian stock market using these methods.