The stock market consists of various participants who engage in buying and selling numerous shares. These participants can be categorized into retail investors, large investors, and institutional investors. Retail investors are typically smaller investors, while large investors are individuals with high net worth.
A bulk deal is a type of transaction where a minimum of 5% of a company’s total equity shares are traded simultaneously during the regular trading session. Unlike block deals, these transactions can be executed at any time during regular trading hours and do not necessitate the opening of a special window.
However, block deals involve single trades with a minimum of 5 lakh shares or a value of Rs 10 crore, where two parties agree to buy and sell shares at the same price.
Following are the block deals that occurred in the month of July this year, the data were obtained from the official website of the National Stock Exchange.
| Date | Company Name | Qty Traded | Avg deal Price Rs | CMP Rs | % change on Avg deal Price |
| 06-Jul-23 | Eris Lifesciences Limited | 27,00,000 | 697.00 | 796.4 | 14.26% |
| 14-Jul-23 | Patanjali Foods Limited | 10,78,000 | 1,155.00 | 1310 | 13.42% |
| 14-Jul-23 | Patanjali Foods Limited | 2,00,000 | 1,165.00 | 1310 | 12.45% |
| 17-Jul-23 | Godrej Consumer Products | 1,85,612 | 1,062.95 | 1015.4 | -4.47% |
| 17-Jul-23 | Infosys Limited | 1,45,679 | 1,425.95 | 1365 | -4.27% |
| 17-Jul-23 | Kotak Mahindra Bank | 1,24,674 | 1,869.00 | 1823 | -2.46% |
| 17-Jul-23 | Mahindra & Mahindra | 3,19,564 | 1,546.55 | 1474.3 | -4.67% |
| 17-Jul-23 | Marico Limited | 4,25,756 | 539.45 | 574.8 | 6.55% |
| 17-Jul-23 | Tata Consultancy Services Ltd | 99,465 | 3,514.65 | 3398 | -3.32% |
| 17-Jul-23 | Tech Mahindra Limited | 1,55,187 | 1,228.65 | 1140.35 | -7.19% |
| 17-Jul-23 | Tube Invest of India Ltd | 78,655 | 3,287.25 | 3031.95 | -7.77% |
| 18-Jul-23 | HDFC Bank Ltd | 2,73,810 | 1,678.90 | 1633 | -2.73% |
| 18-Jul-23 | Rallis India Ltd | 97,00,000 | 215.05 | 213.9 | -0.53% |
| 26-Jul-23 | United Breweries Limited | 46,28,452 | 1,465.80 | 1556.4 | 6.18% |
| 31-Jul-23 | SBI Life Insurance Co Ltd | 5,07,005 | 1,289.75 | 1253.75 | -2.79% |
If we observe the above data then we find that only two stocks, namely Eris Lifesciences and Patanjali Foods Ltd, are currently trading above the average block deal price. Eris Lifesciences is trading at a significant 14.26% higher than the average block deal price, while Patanjali is trading approximately 13% higher, based on today’s closing price on the NSE.
When looking at the data from a volume perspective, the largest block deal occurred in Rallis India Ltd, with a substantial traded quantity of 97 lakh shares at an average price of Rs 215. Following that, the second-largest block deal took place in United Breweries Ltd, involving 46.28 lakh shares traded.
Block Deal plays a significant role in shaping the dynamics of the stock market. These large transactions, involving the buying or selling of a substantial number of shares, provide valuable insights into investor sentiment and market trends.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
Published on: Aug 3, 2023, 5:36 PM IST
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