If you’ve ever spotted sudden spikes in stock prices or unusually large trades during market hours, chances are you’ve witnessed a bulk or block deal in action. These high-volume transactions involve big players moving serious money.
For a retail investor, keeping an eye on such deals offers clues about what institutional investors are up to. This quick guide breaks down what bulk and block deals really are and how they might give you an early hint about stock interest shifts.
What is a Bulk Deal?
If any investor trades a large number of shares in a single day, we call it a bulk deal. Specifically, it happens when the total buy or sell crosses 0.5% of the company’s overall listed shares. A bulk deal in NSE is split across various transactions when the market remains open.
Once the day wraps up, the stock exchange puts out the details for everyone to see. When bulk deals show up repeatedly in a stock, it often sparks conversation among the latest market news watchers.
What is a Block Deal?
A block deal is when two investors settle a massive trade directly with each other. It’s when someone buys or sells a huge chunk of shares, either 5 lakh or more, or when the deal crosses ₹10 crore in value.
These don’t happen during the usual buying and selling hours. Instead, there’s a special trading window set aside just for them, one early in the morning (8:45–9:00 AM) and one in the afternoon (2:05–2:20 PM).
Bulk vs Block Deals: What Sets Them Apart
Both bulk deals and block deals involve heavy buying or selling, but they don’t play by the same rules. If you’re trying to figure out which is which, here’s a quick comparison to clear things up. From timing to visibility, these two types of trades follow very different paths.
| Point of Difference | Bulk Deal | Block Deal |
| Minimum Size | 0.5% or more of a company’s total equity in a single day | At least 5 lakh shares or ₹10 crore in one go |
| Who Can Trade | Both individuals and institutions | Usually, large institutions (mutual funds, insurance firms, etc.) |
| Execution Timing | During regular market hours | Only during special windows (8:45–9:00 AM and 2:05–2:20 PM) |
| Visibility During Trade | Publicly visible after the trading day ends | Not visible while it’s happening |
| Order Type | Can be split across multiple transactions | Must be a single transaction |
| Price Range | Follows normal market price movement | Must be close to the previous close or recent hourly average |
Smart Pointers for First-Time Market Watchers
If you’re new to the market, here’s a way to understand large trades without rushing to conclusions.
1. Keep An Eye On Bulk And Block Deal Filings
If a mutual fund or institutional investor is picking up shares in a company, it might mean they’re betting on its future. But don’t treat it like a tip-off. You can rather look at it to get curious and not be carried away.
2. Don’t Let Big Numbers Fool You
A massive trade doesn’t always stir the pot. Some bulk or block deals happen without shaking up prices at all. You’ve got to look at how often these deals happen in that stock, and under what circumstances.
3. Use Them As Part of The Full Picture
Combine these deals with price charts, company updates, and overall market mood after watching the market news. Blindly following a big investor’s move might land you in trouble, especially if you don’t know their game plan.
Wrapping Up
Bulk and block deals offer a peek into what the big players are betting on, but they aren’t the whole picture. These trades can hint at rising interest, but they don’t promise outcomes. It’s better to pair these signals with solid research and market understanding. Watching what the big money is doing can be useful, but only when combined with smart thinking.
