Water limits crop production in the world. Identification of novel genotypes that perform better under the water stress environment is critical to mitigate adverse impacts of climate change and land-use pressure. The present study evaluated 196 diverse wheat genotypes of WAMI (Wheat Associated Mapping Initiative) panel for water stress at three different locations (BHU, Varanasi, India, control (E1) & water stress (E2); ARI, Pune, India, control (E3) & water stress (E4) and Jabalpur, Madhya Pradesh, India, control (E5) & water stress (E6)) during Rabi of 2020-2021. Water stress treatment was imposed at heading stage (Zadoks Growth Stage-Z 59) by stopping irrigation and the treatment was continued till the soil moisture reached to 40% to the control (100% moisture) of field plots. All genotypes showed significant reduction in their performance under water stress in all the three locations. Grain yield was the most influenced variable where contribution of G×E interaction for percent variation in grain yield was highest (16.7%) than other traits. Among physiological traits, normalized difference vegetation index (NDVI) showed the highest positive correlation (r = 0.38, P < 0.01) with the grain yield specifically under drought and not in the control (r = 0.09, P < 0.01), which suggested that the NDVI may be used as a marker to identify drought tolerant genotypes. Stress Tolerance Indices (STI) reported positive and significant correlation with grain yield at all environments (at BHU location under drought condition DI (r = 0.87; P < 0.01), GMP (r = 0.89; P < 0.01), MPI (r = 0.83; P < 0.01), STI (r = 0.88; P < 0.01), YI (r = 1; P < 0.01)) serves as an effective tool in differentiating drought tolerant genotypes. GGE bi-plots discriminated E1 and E2, with E6 and suggested negative relation and cross over interaction between these environments for grain yield. Which Won Where bi plot identified G80 at E1 and E2; G39 at E3 and E4; G219 at E5 and G272 at E6 as specifically adapted genotypes. Further, multi trait stability index (MTSI) selected 29 genotypes as stable performers across all environments. Overall, our study identified NDVI trait as a potential marker tool for high throughput screening under drought condition and MTSI as a novel selection method which considers all traits in identifying stable performer across environments.