InvestorQ : Why do some customers opt for a buying in bulk deals?
Khushi Patel made post

Why do some customers opt for a buying in bulk deals?

vidhya Laxmi answered.
3 years ago
There are many institutional investors who deliberately ensure that their total volumes during the day stay under 0.5% of the capital so that they stay within the limits. But some buyers deliberately prefer to be reported in bulk deals as this can be looked at as a signal of building interest in a particular stock. Normally, bulk deals tend to be indicative of a sudden spurt in interest from informed investors. If you take the directional bulk deals on the NSE and BSE over a period of time and see the impact on stock price, it is quite evident that where there is a concentration of interest from informed institutions, there is a positive impact on prices. The reverse holds in case of consistent selling. A word of caution is warranted here. Many smart investors skirt the bulk deal reporting by executing slightly lower than the 0.5% mark. So don’t take the bulk deals data as entirely indicative.