The impact of selected major variables on stock return of the Pakistani emerging capital market is inclined by transforming the major economic variables. The three major economic variables of the Karachi stock exchange are foreign direct investment, foreign rate and inflation. While estimating and correlating the regression model experts recommended the Ordinary Least Square (OLS). This whole process result had become a significant negative impact on inflation and foreign direct investment of Karachi stock exchange.
The key determination of the present research is to examine the impact of selected major variables on stock return of the Pakistani emerging capital market Karachi Stock Exchange. The researches display that capital market is inclined by transform in major economic variables. This study observes impact of three major economic variables i.e. foreign direct investment, foreign exchange rate and inflation at Karachi stock exchange. The monthly data of ten years practice in this study.