Stock Market

Stock market is the place were all rootages and other securities subvert and sell. Pakistan agree three main derivations markets (KSE, LSE, ISE).Among these stock transmutes Karachi stock exchange constituteed on 18 September 1947.it was the largest stock exchange in Pakistan and oldest in the atomic number 16 Asia. its growing day by day.Many ups and downs are occurring in KSE delinquent to political instability, securities threats and big-economic issues however due to negative issues. its show a unequivocal progress. Two types of KSE,100 and KSE 30 index. KSE 100 index rapidly growing in Pakistan indexes. 2013 is the best year in history of stock market in Pakistan on December 31 (25,261) points are occur which are owing(p) achievement.Top five companies in KSE 100 index are be capitalize and weight age.No Company Names 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 petroleum 5.0 6 197,201,080,0005 Standard chartered Bank 4.41 171,704,800,000Literature check forth According to researchers stock market in country play a vital role in economy growth. Many factors that have an concern on stock market. These factors may decrease the performance or may growing the performance. Government of every country should encourage these factors may increase the performance and should discourage these factors that have diverse impact on stock market.A study many articles and every paper about these factors but found that interest judge has a negative impact on stock market. Interest direct also decrease the efficiency of stock market.Davidson (1996) focus the relationship Between both variables and use regression abstract to define the relationship. He found that important impact of interest ordain on stock market. his results are focus on long terminus interest rate that are play fundamental role in price dividend ratios.Knut (1996) he found that those countries w ith less interest rate has blotto market as compere to who have high interest rate. He also says that develop countries having low rate thats way its market is especial(a) ordinary.Kellen (2000) worked develop markets (south Africa, Zimbabwe) he says that in this market high interest rate think to huge loss market and its prices. After study the markets he found that relationship is negative in both variables.Hosing (2004) find out variables have different 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 antagonist relation between both variables. He also focused on cycles research. For example ten to fifteen years etc.Salahuddin (2009) study two factors that foundation impact on country growth and reduction.These 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 pomposity has negative impact on stock market.