Apollo Hospitals shares slid 5.5% to ₹8,185, matching a 5‑6% decline seen in Fortis, Max, and KIMS. The stock, which has already fallen 15% YTD, sits on a 5.5% dip that places it among the top five losers on the Nifty 500 index.
The fall follows a Supreme Court hearing that highlighted a ₹2,700 cost for a drug at a retailer being billed ₹27,000 to patients. Petitioners argued that a 10‑fold markup and a 82% exemption from price‑control orders raise concerns about fairness and affordability.
In the courtroom, the Court questioned the 16% markup rule that applies to all drugs and devices, noting that items deemed "essential" are beyond the scope of price‑control orders. The petition also pointed out that only 1,000 drugs fall under the National Pharmaceutical Pricing Authority’s purview.
The next hearing is set for October 12, a date that has prompted traders to weigh the possibility of regulatory action. Market participants are monitoring the docket closely for any directives that could tighten pricing controls.
Across the sector, Apollo, Fortis, Max, and KIMS have all slipped between 5.2% and 6%, with YTD losses ranging from 11% to 15%. The broader health‑care index is reflecting a cautious stance amid the legal scrutiny.
For now, investors are looking for any signals from the Supreme Court that could either restrain or relax pricing pressures. A decision could reshape the valuation of hospital equities and alter the sector’s risk‑reward profile.