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Market Intelligence › Basic Terminologies

BLOCK DEAL AND BULK DEAL: LARGE TRADES THAT BECOME PUBLIC

The difference between the two, how they are reported, and what they tell you

Published by The Retail Trader · JUL 23, 2026 · Market Basics

Sometimes a very large volume shows up in a stock in a single day, and in the evening news of that deal comes out. This is a block or bulk deal, and the two are different things.

THE DIFFERENCE BETWEEN THE TWO

A bulk deal is where a client buys or sells, in one day, more than a fixed percentage of that stock's total shares. It happens in the normal market itself and is reported that day.

A block deal happens in a separate window, above a minimum value, and within a fixed price band. It does not show up in the normal order book.

WHAT YOU CAN LEARN FROM THEM

This data is public, but its meaning is limited:
• The name of the buyer and seller is visible, not their reason.
• Whether a large fund is entering or exiting is a piece of information — not a signal.
• Many deals are only transfers from one fund to another.
• That day's volume can be completely misleading because of these deals.

ONE PRACTICAL POINT

Taking a position after seeing a big name's entry often does not work, because their horizon, size and exit plan are completely different from yours. You also do not get their entry price — it has already happened by the time you read about it.

This article is for education only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.

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