Apollo Hospitals shares slid 3% after the Supreme Court concluded its hearing on drug price caps, marking the latest in a string of sell‑offs for the hospital sector.
Max Healthcare also fell 3%, with Fortis Healthcare sliding 3.3% and Aster DM Quality Care down 2.8%, reflecting investor unease over pricing reforms.
Park Medi World, the second‑largest private chain in North India, fell a steep 6%, the largest single‑day drop among the group.
The hearing, held on Oct 12, saw the government argue for a balance between pricing and availability, claiming India already enjoys the lowest drug prices globally. The Supreme Court, however, questioned why the government cannot exercise fuller control and reiterated its view that manufacturers add a 10× markup on R&D costs.
Earlier, the court had labelled the steep markup on cancer medicines a "carnage" and proposed a uniform 16% margin on all drugs, while the government had capped trade margins at 30% on non‑scheduled anti‑cancer drugs, saving roughly ₹984 crore annually.
With the next hearing scheduled for Oct 27, analysts warn that pricing policy outcomes could trigger further swings, and investors may keep a close eye on the court’s rulings for clues on future regulatory tightening.