The investment behaviour of retail investors has become a crucial subject of investigation within the framework of the burgeoning Indian capital market. Retail participation in equities and related financial instruments has significantly increased in recent years, driven by enhanced financial literacy, digital trading platforms, regulatory reforms, and improved access to market information. This paper analyses the investment behaviour of retail investors in the Indian capital market, emphasizing the economic, psychological, demographic, and informational factors that affect their investment choices. The research underscores the impact of factors such as age, income, education, risk tolerance, investment goals, market awareness, and social influence on the preferences and behaviours of individual investors. It also looks at how behavioural biases like overconfidence, herd behaviour, loss aversion, and anchoring can affect rational decision-making. The paper stresses that retail investors don't always make decisions based on traditional financial theories. Instead, they are often influenced by how they feel, what they think, and how the market feels. The research also talks about how technological progress, online brokerage services, mobile trading apps, and financial advice content affect how many retail investors participate and how confident they are. The findings indicate that although retail investors are becoming more engaged in the Indian capital market, their choices are frequently hindered by insufficient financial literacy, poor risk evaluation, and vulnerability to speculative trends. The paper concludes that enhanced investor education, transparent market practices, and heightened financial awareness are crucial for fostering informed and sustainable investment behaviour among retail investors in India.