Bulk Deal refers to a stock market transaction where a significant number of shares are bought or sold in a single trade, but unlike block deals, these transactions occur through the normal trading window rather than a separate platform. Bulk deals are an important indicator of substantial trading activity and are closely monitored by investors and analysts to gauge market trends and institutional involvement.

In India, a trade is classified as a bulk deal if the number of shares traded exceeds 0.5% of a companyís total equity or the trade value crosses a predefined threshold, typically around ?5 crore. These deals are reported on stock exchanges like the NSE and BSE, with details such as the stock name, traded volume, price, and the identity of the broker facilitating the transaction. This transparency allows market participants to track significant trading activity.

The main purpose of a bulk deal is to enable large investors, such as mutual funds, foreign institutional investors (FIIs), and high-net-worth individuals, to execute substantial trades without the restrictions of a separate trading window. However, since these trades occur in the regular market, they can have a direct impact on stock prices depending on market liquidity and volume.

Analyzing bulk deals helps investors understand market sentiment and institutional strategies. Repeated buying may indicate confidence in the companyís prospects, while repeated selling could signal profit-taking or portfolio rebalancing. Nevertheless, bulk deals should be interpreted cautiously, as they represent individual trading decisions rather than guaranteed stock trends.

From a regulatory standpoint, SEBI mandates reporting of all bulk deals to ensure transparency and protect investor interests. These rules help maintain market integrity by providing timely information about significant trades, reducing the chances of manipulation, and promoting informed decision-making among retail and institutional investors.

In summary, a bulk deal is a large-volume stock transaction executed through normal market channels, offering insights into institutional activity and market sentiment. By monitoring bulk deals, investors can better understand trading trends and make informed decisions, while SEBI regulations ensure transparency and fairness in these transactions.