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Abstract
The Assumptions of Human Rationality as established by the Conventional Economic theories have lost its sheen in the light of prevailing inconsistencies in human behavior and their investment choices under uncertain circumstances. The same have been repeatedly challenged by several Behavioural Economists in the last 4 decades. Stock Markets are no exception. This paper is an attempt to analyze the movement in Indian capital market under the vigilant eye of behavioural biases that override the rationality of investors, wiping away all their savings and causing bankruptcy. The suggestions have been made to incorporate fundamental analysis along with psychological studies of market to avoid investment blunders.