Block deal data: Rs 55,000-crore transactions in March so far; investors cautious

Block deal data: Dalal Street has recorded block deals amounting to Rs 55,000 crore so far this month, setting March on course to emerge a fourth month with block deals of more than Rs 21,000 crore, according to provisional exchange data.

According to Zee Business research, several promoters, private equity funds and global investment funds have pared stake in listed entities in March through block deals.

As of March 20, here’s a summary of the various block deals that have taken place in March 2024:

Among the block deals, promoters trimmed stakes in several companies, including TCS, M&M, Bharti Airtel, and Mahindra & Mahindra.

Also read Tata Sons offloads stake in TCS; stock falls

Company                                 Promoter

TCS-                                      Tata Sons

Indigo                                     Rakesh Gangwal

M&M                                      Prudential Management Services

Bharti Airtel                            Singapore telecommunications

Motherson                              Sumitomo Wiring Systems

Sundaram Clayton                 Venu Srinivasan

How market wizard Anil Singhvi views the series of block deals in March?

Zee Business Managing Editor Anil Singhvi points out that while several promoters appear to be in the mood to offload stakes in their respective firms, funds seem to be inclined towards focusing on safer equity bets instead.

The series of back-to-back block deals are likely to further impact the overall liquidity situation in the market, he says.

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What are the main differences between bulk deals and block deals?

बड़ी ब्लॉक डील से लिक्विडिटी की समस्या?

मार्च में लिक्विडिटी की कितनी समस्या? 

अगले 6 सेशन में इन्वेस्टर्स क्यों रहें चौकन्ने?#StockMarket #InvestorOpportunity #TradingTips https://t.co/GKnWfjqdea

— CA Anil Singhvi Zee Business (@AnilSinghvi_) March 20, 2024

This time of the year typically sees limited liquidity on Dalal Street as market participants defer major investment decisions owing to multiple factors such as limited funding by banks, he adds. The market guru also suggests market participants exercise caution in the remaining sessions of the month.