Hospital stocks came under strong selling pressure on Wednesday morning, with counters falling up to 7% amid heavy volume.
Stocks, such as Max Healthcare Institute (down 7%), Apollo Hospitals Enterprise (down 6%), Yatharth Hospital (down 5%), Fortis Healthcare (down 6%), Artemis Medicare Services (down 5%), and Aster DM Quality Care (down 5%), crashed 5-7%.
Other players from the segment, such as HealthCare Global Enterprises (down 4%), Krishna Institute of Medical Sciences (KIMS) (down 4%), Medanta (down 4%), and Rainbow Children’s Medicare (down 3%), also lost significantly.
Why are hospital stocks down today?
Most hospital stocks are falling today due to profit booking after the US announced certain speciality medicines and their ingredients will be exempted from a new 100% tariff on patented drugs.
The exemption covers medicines used to treat rare diseases and several specialised therapies, including infertility treatments, cell and gene therapies and antibody-drug conjugates. The same zero-tariff treatment will apply to qualifying ingredients used in these products.
Experts say that the pharma and hospital segments are witnessing profit booking after their outperformance.
(This is a developing story. Please check back for fresh updates.)
