The prime objective of this study is to find the impact of political decisions and events on stock returns, organize and evaluate the literature about the political influences in stock returns and to identify the patterns and trends of these influences. This study has been completed with the help of extensive literature on stock returns and political influences available on the internet. The limitation of this study is that only available related literature has been considered. This research will be helpful for the investors and all other stakeholders of stock market who are unaware about the impact of political influences on the stock returns in all over the world as well as Pakistan.