Max, Fortis, Apollo: Why are hospital stocks bleeding in a firm market?

Nifty Healthcare has outperformed Nifty50 and some individual healthcare stocks have doubled investor wealth in FY24

Stocks of hospital/healthcare companies have taken a beating in the last two trading sessions. Max Healthcare, one of the largest hospital chains of India, has tanked 16 per cent in just two days till Friday’s intraday deals. Whereas the biggest hospital chain, Apollo Hospitals had slipped 4.7 per cent during this period. 

Medanta’s parent firm Global Health and Fortis Hospitals also took the beating for the second straight day as the stocks of the companies were trading about 6 per cent below the highs seen on Wednesday. Overall, the healthcare index on the Nifty was down by 0.7 per cent