The study focuses on the psychology of the investors and their behaviour. It includes the subsequent effects on the financial markets and the investment pattern. The study is based on the fact that investors are not rational, most investors have limitations to their self-control and are influenced by various biases. However classical financial theory believes that the market and investors are balanced, it is assumed that investors have self-control and are not entangled by cognitive errors or processing information errors, however, this study focuses on the model of social influence and herding behaviour of the investors. Over the past 30 years there have been numerous changes, be it fashion, trends, economy, banking business, stock market, insurance, real-estate business, taxation, computerization, digitization etc. Therefore, the behaviour, and attitude of people in every Generation will not be the same, there have been studies on behavioural finance but not on Generation Z in particular, the present generation is street smart they might have a lot of behavioural patterns unlike the saying goes investors are rational, for the next two decades it is this generation that will play a vital role in the capital market within the country. It is the need of the hour to understand the future of the capital market as it is volatile.