I do understand the explanation given here How do block deals and bulk take place? and other places. What confuses me is the 0.5% Is that the volume of qty currently in the order books of the day, like
( 0.5 * ( Total Bid Qty + Total Ask Qty ) ) / 100, or
( 0.5 * total quantity released by company in the market ) / 100.
Block deals happen before 9:50 A.M. But am noticing frequently on YESBANK and other Scrips such activities well passed 9:50. there are trades of more than 50000 in one go. and not a blip in the movement of price. How is that possible, for Block deals i can understand since deals are on some other terminal but bulk deals are happening in the normal market.
. Would you consider them bulk deals. normal or what 3 Lakh shares in one go didn’t push market price anywhere. If you say it might be the total volume for the minute. No i was sitting at the terminal at that point I saw similar quantities shifting in one go in last few days.
Bulk Deal - If you wish to transact in excess of 0.5% of the company’s outstanding shares, then such transactions are termed as bulk deals. For example assume the total outstanding shares of TCS is 40 million, now if you want to buy 2 million shares (or more) of TCS on a single day, then this will be termed as a bulk deal. All bulk deals are routed through normal markets via brokers. Bulk deals do have a impact on the share prices.
Block Deal - If you wish to transact in multiples of 500,000 shares or 5Cr then if is considered as a Block deal. You can think of it as as - ’ a single block is worth 500,000 shares or 5 crs’. Usually block deals are done off market…but of course one has to inform SEBI about it. Typical example - I have 500,000 shares of Infy sitting in Zerodha’s DEMAT account. My friend wants to buy these shares from me at the current market price and his DEMAT is with lets say ICICI. We both inform our respective brokers and the transaction is routed via a ‘Block Deal’ window. Since this happens off markets, it does not affect the share price, however the numbers will show up in volumes.
I appreciate your response. But if you could look at the chart above. the massive quantities did not effect the price movement at all. This sort of qty in this scrip should have, in the least given a movement of 4 to 5 points in either direction. So makes me wonder did it happen in some other window or in normal market. YESBANK is not a cheap scrip that people can buy 50000+ stocks without effecting the price.
Will the off market window have any market depth information? If so, how to view this? If not, say how do I know the counter party bid/ask qty and price?
I was thinking the exact same thing. Bulk deals are happening with minimal change in price. He i am trading 10 stocks and price moves 0.25%. What is the deal. I read that if bulk deals are executed in parts throughout the day, the broker has to inform exchange before the end of the trading day. So will the volume just come up as a spike near the end of the day.
My understanding is that block deals don’t have volume show up on the counter. But bulk deals should have this.
Other possibility i can think of is, there is some kind of deal between different players, where they place open orders for predetermined quantity at specific levels at specific time and it gets matched and executed instatntly giving the spike. But why go through that when you could go through the block window.
