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Bulk Deals: Click to know more
Bulk deals are large transactions involving a significant quantity of shares in a single company. On the National Stock Exchange (NSE), bulk deals are defined as transactions exceeding 0.5% of a company’s total shares.
Why Are They Important?
Bulk deals can offer insights into the activities of large investors and potential market movements. By identifying stocks involved in bulk deals, you can:
- Gauge investor sentiment: Large investors often have access to information and resources that smaller investors may not. Their actions can signal their confidence (or lack thereof) in a particular stock.
- Spot potential price movements: Bulk deals can sometimes lead to significant price changes, either upwards or downwards, in the near future.
How to Use Bulk Deal Information:
- Monitor large transactions: Keep track of stocks that are frequently involved in bulk deals.
- Analyze investor behavior: Try to understand the reasons behind large investors’ buying or selling decisions.
- Consider potential price movements: Be mindful of the possibility of price changes following bulk deals, but remember that other factors also influence stock prices.
Remember: While bulk deals can provide valuable information, they should not be the sole basis for your investment decisions. Always conduct thorough research and consider other factors before making any trades.