I thought I knew how bulk deals work. But look at this. I Downloaded bulk deals file from NSE.
On 28th march, these 4 transactions amounted to 4 crore volume.
But on 28th March 2024, only 57 lakhs shares were traded on NSE According to 1 day NSE data.
I believe when the bulk deal is executed through the block deal window, it doesn’t get reported in the trading volume data…
Here is the link to the article i found regarding this.
“Understanding bulk deals and block-deals
A bulk deal in the share market is a deal where the total quantity of shares bought or sold is greater than 0.5% of the share capital of the company. A bulk deal can be transacted either through the normal trading window or through the block trading window. Quite often, when a large FII or mutual fund or an HNI wants to buy a large block of shares in a particular stock, they prefer to use sliced trades throughout the day. This ensures that they get the best advantage of the volatility in the market and are able to reduce their overall cost of acquisition. Similarly, in case of bulk selling also, the sliced approach helps them get a better selling price. Bulk deals have to be reported to the exchange by the broker executing the trade. In case the bulk deal (exceeding 0.5% of the share capital) is executed through the block window, then the trade has to be reported immediately to the exchange. In case of a sliced order through the day; if the total purchase or sale exceeds 0.5% of the share capital, then the bulk deal has to be reported to the exchange within 1 hour of close of trade.”
https://www.motilaloswal.com/blog-details/what-clues-can-we-gather-from-the-bulk-deals-reported/1455#:~:text=Understanding%20bulk%20deals,close%20of%20trade.
PS
I didn’t even know there were two type of deals(bulk & block) before searching on this topic.
