We recently asked some of our Telegram users if they knew the difference between bulk and block deals.
The responses were surprising! How about you—are you familiar with these terms?
Bulk Deals happen when an investor buys or sells a large quantity of shares—more than 0.5% of a company’s total equity—in a single day.
Bulk Deals occur during regular trading hours, so everyone in the market can see them. This visibility can sway market sentiment, as large trades often signal institutional interest—or disinterest—in a stock.
For example, if a major investment firm sells a significant stake in a company through a Bulk Deal, it might suggest they’re not feeling too optimistic about the stock.
Block Deals, on the other hand, involve two parties agreeing to trade a substantial number of shares—usually at least 5 lakh shares or shares worth ₹5 crore—in a single transaction. These trades are executed in a special window, separate from regular market hours, to minimize any impact on the market price.
For instance, if a big institutional investor like a mutual fund wants to purchase a large stake in a company, they might opt for a Block Deal to avoid sudden price fluctuations.
With ScanX, you can easily track and analyze these significant trades, giving you a clear view of how major players are moving in the market. This can help you make more informed investment decisions.
Did you try out this feature? Yes, please share your experience