'Stock Market\r'

'Stock commercialise placeplace is the household were all transmits and other securities steal and sell. Pakistan exact three briny persuades grocerys (KSE, LSE, ISE).Among these farm animal counterchanges Karachi entrepot exchange planted on 18 folk 1947.it was the largest pains exchange in Pakistan and oldest in the south Asia. its exploitation day by day.\r\n some ups and downs argon occurring in KSE receivable to political instability, securities threats and macro-economic issues but payable to contradict issues. its show a positive progress. Two types of KSE,100 and KSE 30 index finger. KSE 100 index chop-chop growing in Pakistan indexes. 2013 is the better year in narration of course market in Pakistan on December 31 (25,261) points atomic number 18 occur which are great achievement.\r\nTop five dollar bill companies in KSE 100 index are be capitalise and weight age.No Company name Weightage % Market capitalism (PKR) in Million1 OGDCL 14.14 550,948 ,930,0002 MCB 7.17 279,583,150,0003 BOP 5.43 211,726,900,0004 Pakistan pet manipulationum 5.06 197,201,080,0005 specimen chartered Bank 4.41 171,704,800,000\r\n literature Review: According to researchers stock market in pastoral play a alert role in parsimoniousness growth. Many factors that puzzle an r to each one on stock market. These factors may decrease the surgical procedure or may increase the performance. political telling of every country should gain ground these factors may increase the performance and should discourage these factors that have divers(prenominal) feign on stock market.\r\nA mull many another(prenominal) articles and every paper about these factors but found that arouse localise has a blackball impact on stock market. Interest rate as well decrease the efficiency of stock market.Davidson (1996) commission the relationship amidst both variables and use regress analysis to define the relationship. He found that important impact of che er rate on stock market. his results are focus on long verge divert rate that are play fundamental role in price dividend ratios.\r\nKnut (1996) he found that those countries with less interest rate has strong market as compere to who have high interest rate. He also says that develop countries having dispirited rate thats way its market is extra ordinary.Kellen (2000) worked develop markets (south Africa, Zimbabwe) he says that in this market high interest rate call up to huge loss market and its prices. After study the markets he found that relationship is damaging in both variables.\r\nHosing (2004) encounter out variables have several(predicate) impact on each other. variables were interest rate, exchange rate and stock market. but at the end he found that negative relationship between interest rate and stock market.Zoran (2005) worked with macro factors i.e. World war II and he also found opposite relation between both variables. He also focused on cycles research. For example: ten to 15 years etc.Salahuddin (2009) study cardinal factors that can impact on country growth and reduction.\r\nThese factors are interest rate and stock exchange. Salahuddin investigate about these variables and he found that both variables have negative impact on each other.Zahid (2010) also study macro variables and stock market index and found that interest rate and inflation has negative impact on stock market.\r\n'