Factors Influencing on Stock Market in Pakistan

Abstract

The stock market is an economic institution that promotes the growth and development of the economy of a nation. This paper investigated the impact of inflation on stock market performance .The aim of this research to find out factors which have great impact on stock market performance of any country. This study discusses the main variable like interest rate and inflation rate and their effect on stock market performance. This study investigated that interest and inflation rate has significant negative relation with stock market performance, while in regression analysis it has been observed that the value of R² = 0.62 means model is fit and can predict outcome. This study provides valuable knowledge to the government, economist and shareholders to jug the position of stock market for investment purpose.

Keywords: Stock Market Performance, Inflation Rate, Interest Rate