Block deal activity hits 6-month low at Rs 25,669 crore as markets wobble

Relentless selling by FPIs, disappointing earnings growth during the second quarter, and a rising US dollar have taken the wind out of the sails for secondary share sales

The domestic equity markets are grappling with a pronounced slump in secondary share sales. Block deal activity in November fell to its lowest since April this year, with transactions totalling Rs 25,669 crore, a sharp decline from the monthly average of nearly Rs 57,000 crore seen during the first 10 months of 2024.

 

Several private equity firms, promoter entities, and others are holding back their share sale because of waning interest from large institutional buyers, besides broader market uncertainties, according to industry experts.

 

In November, the benchmark Nifty 50 index recorded back-to-back monthly losses for the first time since February