The paper is an attempt to identify the economic and psychological factors that impact the market price of shares of the listed Pharmaceutical companies in Dhaka Stock Exchange(DSE). More specifically this study aims at finding the extent to which factors like Earning per Share, Net Asset Value per Share, Dividend rate, Disclosures in Annual Report, Percentage of shares held by Public, Good news, Bad News etc influence the market price. The study reveals that about 68.1% of the variations in market price are explained by the above mentioned economic and psychological factors. Among different economic factors dividend rate has the most positive influence on the market price while among the psychology factors good news about a company is the most positively influencing factor. Findings also signify thatthe percentage of shares held by public, and bad news about a particular company negatively influence the market prices of shares of that particular company.