What are Bulk and Block Deals?
Understanding Bulk Deals
A Bulk Deal is a transaction where the total quantity of shares bought or sold is greater than 0.5% of the total share capital of the company.
Bulk deals happen during the normal trading window provided by the exchange. Because they happen on the open market, they are visible to everyone and can cause significant volatility in the stock price during regular trading hours. Brokers must notify the exchange about these trades immediately.
Understanding Block Deals
A Block Deal is a massive single transaction that involves either a minimum of 5,00,000 equity shares or a minimum value of ₹10 Crores.
To prevent these massive trades from causing chaotic price swings in the open market, block deals are executed through a separate trading window provided by the stock exchanges (usually in the morning session from 8:45 AM to 9:00 AM). These deals are typically pre-negotiated between two institutional parties.
Why Should Retail Investors Care?
Following bulk and block deals allows retail investors to track the "smart money." If prominent Mutual Funds, FIIs, or legendary investors are consistently accumulating shares in a mid-cap company through bulk deals, it often signals strong underlying fundamentals and conviction.
Key Takeaways
- Bulk Deals = >0.5% of total share capital, happens during normal trading hours.
- Block Deals = >₹10 Crores or >5L shares, happens in a special pre-negotiated window.
- Tracking these deals helps identify where institutional money is flowing.
Conclusion
By monitoring these large transactions, you can validate your investment thesis or spot emerging trends. Monitor live institutional movement on our Deals Dashboard.