This study applies Markov chain models to analyze stock market dynamics, focusing on the Sensex index and a representative portfolio. The research reveals significant similarities in the stationary distributions of the Sensex and its portfolio TPMs, suggesting parallel behaviors. Additionally, it evaluates the efficiency of stocks within the portfolio by examining their stationary probabilities and Mean Recurrence Times. The findings, validated through chi-square tests for goodness of fit, provide novel insights into stock market behavior and offer valuable guidance for investors and traders in their decision-making processes.