What information do we get from bulk deals?

The following institutes/investors do bulk deals.

• Mutual Funds
• Foreign Institutional Investor
• Banks
• Financial Institutions
• Insurance Companies
• Venture Capitalists

To get an understanding on why bulk deals are happening in particular scrip, one has to know the profile of the above said institutes that involved in the bulk deal. If a stock appears in the list of bulk deals, it does not always mean that it would appreciate in future because in every deal there will be buyers as well as sellers. The strategy for both parties may be different. Some times bulk deals information is used to reveal upcoming multi baggers. If continuous bulk deals happen in a counter with high volumes and the pending quantity at the end of the trade is high then there would be good news in that counter and price will appreciate in near future. One has to be careful as the same phenomenon happens even in operator driven counters. So this information should be used as first level of investigation. Next step is to know the fundamentals of the company, its rank amongst the peers in the same industry and future prospectus of the company. Then you can take a decision if you can invest in that company.

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Sathish Emmadi

Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.

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