Financial markets are usually considered an efficient system in which securities prices quickly integrate all available information. However, because of changes in market patterns, the indication from behavioural finance suggests that investors are not rational. They are irrational. Psychological influence and social interactions in the market play an important role in determining their market behaviour. One such important phenomenon is Herd Behaviour, where investors imitate the actions of other investors, and they depend more on other investors rather than their own analysis of market conditions.

Herding in stock markets leads to large buying and selling activity, leading to changes in prices from their fundamental values. Many investors follow current trends, pessimism and optimism contributing to the development of speculative bubbles, followed by market corrections. Such a kind of herding behaviour and market bubbles have been observed more often, where investorssentiment increases the price fluctuations and instability in markets.

This research paper examines the concept of herd behaviour and its consequences in stock markets, with stock market bubbles and corrections that followed. The study also highlights how investors' herd behaviour can influence market trends and market volatility. This paper found the vital role of herd behaviour in market instability and inefficiency. Therefore, investor awareness has to be increased, promoting informed decision-making and improving regulatory oversight to avoid adverse herd-driven market movements. Further research is necessary to understand this herd behaviour and its long-term consequences for market stability..