The paper is an empirical study on Indian capital market for the period 1st January, 2010 to 31st December, 2015. The random walk hypothesis is tested to see the behavior of stock prices. While there are three forms of Market efficiency namely weak, semi strong and the strong, market efficiency of weak form is tested here by applying the Runs test and Auto-correlation test. The random walk hypothesis proves the market efficiency of the Indian market. The Runs test shows the daily return on nifty index does not move in a random manner. The results of the test raise the question mark on the efficiency of the market. Auto-correlation test suggest that there is no serial correlation in the nifty index data which supports the market efficiency in the Indian capital market.