Hypothetically, if I have crores of rupees, how many shares of a stock can I buy before it affects the price of a stock. I know it’d vary from stock to stock and depend on volume. Lets say its a high volume stock, if someone buys 0.5% of the volume in one go, will it affect the price by a lot
You will have to go for a block deal or a bul deal in this case.
Block deals are prearranged so the price is also set before making the deal. So this does not affect the demand and supply much and therefore doesnt interfere with the stock price.
Block deal is a trade, with a minimum quantity of 5,00,000 shares or minimum value of Rs. 5 crores, executed through a single transaction, on the special “Block Deal window”.
Bulk deal is a trade, where total quantity bought or sold is more than 0.5% of the number of equity shares of the company.
Not too sure how a bulk deal works
The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders, on the other hand, are visible to everyone.