Financial Crisis in Stock Exchanges-An Empirical Analysis of the Factors that can Affect the Movement of Stock Market Index

This paper focuses on the factors that can affect the movement of stock market index, which creates volatility in the prices of companies listed in the stock market. Stock Market Efficiency Theory focuses on the market news, information, economic conditions, etc. Good or bad news also impact on the market behavior. Initial Public Offering (IPO) is considered as convenient way to raise funds from market. Therefore, important econometric advantages in examining the role of stock markets in the relationship between financial development and growth using time series methods. Summing up the test indicates that the consumer price index and political stability have no relation with the fluctuation in Karachi stock exchange kse100. Secondly the test shows one variable associates with other variable.