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What Are Bulk And Block Deals? Here’s How They Can Change A Stock’s Price Overnight
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While bulk deals may reflect emerging interest in a stock, block deals are usually pre-planned and involve large institutional investors
Market experts say tracking bulk and block deals can offer useful insights into the actions of large investors and institutions. (Representational Photo)
Investors tracking stock market movements often come across terms such as ‘bulk deal’ and ‘block deal’ in daily trading updates. At times, a sharp rise or fall in a stock price can be traced back to these large transactions. Understanding what these deals mean, how they differ, and why they matter can help investors make better sense of market activity.
Bulk Deal
A bulk deal occurs when an investor or institution buys or sells 0.5% or more of a company’s total equity shares in a single trading day. Such transactions take place during normal market hours and are disclosed by the stock exchanges after the market closes.
Bulk deals can have an immediate impact on a stock’s price, as heavy buying or selling often signals strong interest or exit by a large investor. Retail investors sometimes view bulk purchases by institutional players as a vote of confidence in the company.
Block Deal
A block deal is executed through a special trading window provided by the stock exchanges. To qualify as a block deal, the transaction must involve at least 5 lakh shares or be valued at more than Rs 5 crore. These deals are carried out during a specific time slot known as the block deal window, and both the buyer and seller are identified beforehand.
The main objective is to facilitate large transactions without causing excessive volatility in the open market. Unlike bulk deals, block deals are reported to the exchanges immediately.
Differences Between Bulk and Block Deals
Bulk deals are executed during regular trading hours and typically involve relatively smaller quantities compared to block deals. They are disclosed at the end of the trading session. Block deals, on the other hand, are meant for very large transactions, take place in a designated time window, and are reported in real time.
While bulk deals may reflect emerging interest in a stock, block deals are usually pre-planned and involve large institutional investors.
Types of Deals in the Stock Market
There are broadly four types of transactions in the equity market. Regular trading deals involve routine buying and selling by investors on the exchange. Bulk deals refer to large trades crossing the 0.5% threshold of a company’s equity in a day. Block deals are high-value or high-volume transactions conducted through a special window.
Off-market deals involve the transfer of shares outside the exchange platform, such as inter-promoter transfers or strategic stake sales.
What Should Investors Keep in Mind?
Market experts say tracking bulk and block deals can offer useful insights into the actions of large investors and institutions. However, they caution against making investment decisions based solely on these transactions. Investors are advised to also consider a company’s fundamentals, financial performance, management quality and long-term growth prospects.
January 16, 2026, 20:26 IST
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