4 May, 2025
5 mins read
Huge transactions that can impact stock prices are commonly referred to as bulk deals and block deals. While they may sound similar, there are important differences between the two. Understanding the difference between bulk and block deals can help you better interpret market activity and trends. Let's break it down.
A bulk deal in the stock market refers to a single trade where an investor buys or sells shares amounting to 0.5% or more of a company’s total equity shares. These trades happen during normal market hours and are executed through the regular trading window.
The key point is that a bulk deal may happen through multiple transactions during the day, but if the total quantity adds up to 0.5% or more of the company’s total shares, it must be disclosed to the exchange.
For example, if Company A has 10 crore shares, then buying or selling 5 lakh shares or more on the same day will be classified as a bulk deal.
A block deal in the stock market is a single trade where a minimum quantity of ₹10 crore worth of shares is bought or sold between two parties. These deals happen in a special trading window known as the ‘block deal window’, which operates twice a day for just 15 minutes.
Morning: 8:45 AM to 9:00 AM - The reference price for execution of block deals in this window shall be the previous day’s closing price of the stock.
Afternoon: 02:05 PM to 02:20 PM - The reference price for block deals in this window shall be the volume weighted average market price (VWAP) of the trades executed in the stock in the cash segment between 01:45 PM to 02:00 PM.
Unlike bulk deals, block deals are negotiated privately between two institutional investors or large parties. The trade is then reported to the exchange. Block deals are usually done to avoid volatility in the stock price.
Here’s a quick look at the differences between bulk and block deals:
|
Feature |
Bulk Deal |
Block Deal |
|---|---|---|
|
Timing |
During regular market hours |
Special windows |
|
Minimum Size |
0.5% of a company’s total shares |
₹10 crore or more |
|
Number of Trades |
Can be single or multiple trades in a day |
One single trade |
|
Parties Involved |
Can be retail or institutional investors |
Mostly institutional investors |
|
Execution |
Through the normal trading system |
Through the separate block deal windows |
|
Disclosure |
Mandatory on the same day |
Mandatory before the market opens the next day |
Understanding these distinctions is important for anyone tracking large transactions in the market.
The Securities and Exchange Board of India (SEBI) has laid down specific rules to govern block deals and bulk deals activities to promote transparency:
For Bulk Deals:
Disclosure is mandatory to the stock exchange within the same trading day.
Stock exchanges must publish bulk deal data at the end of the day.
Total shares bought must be at least 0.5% of the total listed shares.
For Block Deals:
These can only be done in the special windows from 8:45 AM to 9:00 AM and 2:05 PM to 2:20 PM.
The minimum order size must be ₹10 crore or 5 lakh shares.
Parties must not place multiple orders in the same security in this window.
Disclosure must be made to the exchange by 9:45 AM on the same day.
These rules ensure that such large trades don’t mislead retail investors or manipulate the market.
Both bulk deals and block deals can influence a stock’s price, depending on who is buying or selling and the volume of the trade.
If a reputed institutional investor buys a large number of shares, it can indicate strong confidence in the company. This can drive the stock price up.
On the other hand, if a large investor exits, it may trigger negative sentiment and cause the price to fall.
In the case of block deals, since trades happen outside the regular window, the immediate impact on the stock price is minimal, but once reported, it can lead to price changes based on market sentiment.
Retail investors should track these deals but also look at the fundamentals before making decisions.
To understand how they work in practice, here are a couple of real-world examples:
On 19 March 2025, BSE reported the following bulk deal between its trading members.
BCP (Security Code: 537766):
Buyer: Nitin Aggarwal (1,220,952 shares at ₹1.92)
Seller: Srestha Finvest Limited (957,940 shares at ₹1.92)
Source: BSE
Carlyle Group's Exit from PNB Housing Finance
Date: May 2, 2025
Details: Carlyle Group sold its entire 10.44% stake in PNB Housing Finance through block deals. Approximately 17.3 million shares were sold at ₹1,000.20 per share, slightly below the previous closing price.
You can monitor bulk deals and block deals in the stock market using the following resources:
1. NSE and BSE websites - They publish daily data on these deals.
2. Financial news websites
3. Brokerage platforms - Many brokers display bulk/block deal data on dashboards.
4. SEBI Filings - Disclosures made by companies and large investors are often available in SEBI records.
These platforms provide data on the volume, buyer/seller names, and stock price of each deal.
Understanding the difference between bulk and block deals is essential for anyone interested in stock market movements. While both types of trades involve large volumes, they differ in timing, execution, and participants. Keeping an eye on these deals can offer insights into market sentiment and the interest levels of big players.
However, if you're a retail investor, don’t follow these trades blindly. Always do your research before making investment decisions.
The main difference lies in execution and timing. Bulk deals involve buying or selling 0.5% or more of a company’s equity shares during regular trading hours, while block deals involve a pre-arranged trade of at least ₹10 crore executed in a special morning window.
You can track bulk and block deal data on the NSE and BSE official websites, financial news platforms, and most stock trading apps or brokerage portals.
These deals are typically done by large investors. While tracking them can offer insights, retail investors should not treat them as buy/sell signals. Instead, evaluate the company’s fundamentals and your own investment goals.
Block deals happen between 8:45 AM – 9:00 AM and 2:05 – 2:20 PM.
Bulk deals occur during normal trading hours, from 9:15 AM to 3:30 PM.
Calculate your Net P&L after deducting all the charges like Tax, Brokerage, etc.
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Calculate the average price you paid for a stock and determine your total cost.
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