The Indian Entertainment Industry is among the fastest growing sectors of the country. This industry comprises of Film Industry and Television Industry. Indian film industry is the largest film industry in the world, producing on an average, close to a thousand films a year in all languages. The main objective of this research paper is to know the co relation between BSE sensex and Box Office revenue collections for the period January 2008-July 2009. The research is based on extensive use of different websites providing information related to these two variables. Statistical tools like Karl Pearson method of Co relation, t-test were applied. The findings show that there is a moderate degree positive co relation between these two. It can also be inferred that the co relation between BSE sensex and Box Office revenue collections is not statistically significant Keywords: Recession, Entertainment Industry, Bollywood ,Film Industry