A field experiment was conducted on wheat crop during rabi seasons of 1995–96, 1996–97 and 1997–98 to study the spectral response of wheat crop (between 490 to 1080 nm) under water and nutrient stress condition. An indigenously developed ground truth radiometer having narrow band in visible and near infrared region (490 – 1080 nm) was used. Vegetation indices derived using different band combinations and related to crop growth parameters. The near infrared spectral region of 710 – 1025 nm was found most important for monitoring stress condition. Relationship has been developed between crop growth parameters and vegetation indices. Leaf Area Index (LAI) and chlorophyll could be predicted by knowing different reflectance ratios at milking stage of crop with R2 value of 0.78 and 0.89, respectively. Dry biomass (DBM), Plant Water Content (PWC) and grain yield are also significantly related with reflectance ratios at flowering stage of crop with R2 value of 0.90, 0.98 and 0.74, respectively.