An analysis is made for the steady two-dimensional flow of a viscous incompressible electrically conducting fluid in the vicinity of a stagnation point on a stretching sheet. Fluid is considered in a porous medium under the influence of (i)transverse magnetic field, (ii)volumetric rate of heat generation/absorption in the presence of radiation effect. Rosseland approximation is used to model the radiative heat transfer. The governing boundary layer equations are transformed to ordinary differential equations by taking suitable similarity variables. In the present reported work the effect of porosity parameter, radiation parameter, magnetic field parameter and the Prandtl number on flow and heat transfer characteristics have been discussed. Variation of above discussed parameters with the ratio of free stream velocity parameter to stretching sheet parameter have been graphically represented.