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Concepts & Glossary·Beginner·2 min read

What are bulk deals and block deals?

Bulk deals are trades where a single party buys or sells more than 0.5% of a company's shares in one session. Block deals are large pre-market trades negotiated between institutions. Both signal significant position changes by big players.

Definition

A bulk deal triggers when a single entity (buyer or seller) trades more than 0.5% of a company's total listed shares during normal market hours. These execute through the regular order book and move the price.

A block deal is a minimum ₹10 crore trade executed in a special pre-market window (8:45–9:00 AM). Block deals are negotiated privately between buyer and seller at a price within ±1% of the previous close. They don't impact the regular market price.

Why deals matter

Bulk and block deals reveal institutional positioning that regular volume data might hide. When a marquee investor or a large mutual fund appears in bulk-deal data, it signals their conviction in the stock.

Patterns to watch:

  • Repeated buying over multiple days — accumulation
  • Promoter buying — insider confidence
  • Large exits by known investors — potential red flag

The identity of the buyer/seller is disclosed by NSE and BSE on the same day.

For small and mid-cap stocks, a bulk deal representing 2–3% of shares can significantly shift the supply-demand balance and often precedes multi-week price moves.

How to analyse the data

Check who is buying versus selling. A mutual fund buying is more meaningful than a proprietary trading desk (which might be a short-term trade).

Compare the deal price to the current market price. If a bulk deal happened at ₹500 and the stock is now at ₹480, it suggests the buyer sees value above current levels.

Look at deal size relative to average daily volume. A bulk deal that's 5× the average daily volume is far more significant than one that just barely clears the 0.5% threshold.

Frequently asked

What is the difference between bulk and block deals?
Block deals happen in a special pre-market window (8:45–9:00 AM), require a minimum of ₹10 crore, and execute within ±1% of the previous close. Bulk deals happen during regular hours, trigger at 0.5% of shares, and execute at market price. Block deals don't move market price; bulk deals do.
Where can I see who bought or sold in a deal?
NSE and BSE publish the buyer/seller name, quantity, and price for all bulk deals by end of day. Block deal participants are also disclosed. aftermarkets shows this data with historical tracking so you can see patterns.
Should I buy a stock after seeing a bulk deal?
Not automatically. A bulk deal shows what one party did, not what will happen next. Use it as confirmation alongside other signals — delivery, conviction, fundamentals. Also check whether the deal is a buy or a sell; bulk deals include both sides.
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