What is a Bulk Deal?
A bulk deal is any transaction where a single entity buys or sells shares worth more than 0.5% of the total equity of a company in a single trading session. Bulk deals are executed through normal market hours on the regular trading screen. Both BSE and NSE mandate disclosure of bulk deals before the end of the trading day.
What is a Block Deal?
A block deal is a large transaction — minimum 5 lakh shares or ₹5 crore worth — executed in a dedicated Block Deal Window separate from the normal trading session. BSE and NSE open this window twice daily:
- Morning window: 8:45 AM to 9:00 AM (15 minutes before market open)
- Afternoon window: 2:05 PM to 2:20 PM
Block deals are typically arranged between two large institutional investors — a seller and a buyer — at an agreed price, which must be within ±1% of the previous close or volume-weighted average price (VWAP).
Key Differences
- Execution: Bulk deals on normal market screen; block deals on dedicated window
- Minimum size: Bulk = 0.5% of equity; Block = 5 lakh shares or ₹5 crore
- Price impact: Bulk deals can move prices; block deals minimize price impact via off-market window
- Participants: Both institutions and large retail investors for bulk; mainly institutions for block
What Do They Signal?
Large block deals are often PE funds exiting (sell side) or new institutions entering (buy side). A strategic buyer entering via block deal — particularly an FII buying a sizeable stake — is often bullish for the stock. Conversely, a promoter selling in bulk is worth investigating — it may signal reduced promoter confidence.
Not all bulk/block deals are negative exits. Common situations include:
- Index rebalancing — passive funds must buy/sell to match index weights
- Stake transfer between arms of a fund house (not an open market sell)
- ESOP exercise by employees (bulk buy by employees at strike price)
Tracking Bulk and Block Deals on IPOpulse
IPOpulse aggregates daily bulk and block deal data from BSE and NSE at /deals/bulk and /deals/block. Data includes buyer/seller name, quantity traded, price, and company name — allowing you to spot institutional activity patterns in real time.