This paper tests the cross sectional return predictability of alternative asset pricing models in Indian stock market by considering investor sentiment as conditioning information variable. The sample period spans over January 2003 till March 2011. For the cross sectional tests of alternative asset pricing models we have used both the Fama and Macbeth and Generalized Method of Moments estimation techniques. Cross sectional test results suggest that investor sentiment as a conditioning information variable contains significant information for making the discount factors time varying. In the conditional specifications all the risk factors scaled with investor sentiment significantly influence the pricing kernel. Model comparison test statistics suggests that for Indian stock market considering investor sentiment as the conditioning information the cross sectional tests of alternative asset pricing model reveal that the Five Factor Model that augments Carhart four factor model with a liquidity factor performs better than the other conditional models.