Abstract:
The research paper aims to identify the impact of interest rate and exchange rate on KSE-100 and KMI-30 indices. In this study secondary data from the time period 2017 to 2021 is taken as this study is a time series. We take independent variables interest rate and exchange rate and KSE-100 index and KMI-30 index are our dependent variables whereas GDP growth and inflation rate are our control variables. The data is daily basis of 1-year KIBOR rate, USD to PKR currency rate and daily points of KMI-30 and KSE-100 indices. Ordinary Least Squares OLS form regression analysis is used to find the impact of independent variables over dependent variables. As a consequence of the study, it is found that interest and exchange rate both have significant and negative impact on both indices KMI-30 and KSE-100
