Hospital stocks came under heavy pressure on September 30, falling up to 6 per cent after the Supreme Court raised concerns over steep mark-ups on essential medicines, particularly cancer drugs.

The court described the pricing disparity as “carnage”, a remark that weighed on the entire healthcare pack. The Nifty Healthcare index shed 2.5 per cent.

Apollo Hospitals fell nearly 6 per cent to Rs 8,165.50, Max Healthcare dropped 5 per cent to Rs 929.80, Yatharth Hospital plunged 7 per cent to Rs 1,032.50, and Fortis declined 6 per cent. Aster DM, Manipal and KIMS also ended lower.

Investors fear that regulatory scrutiny of medicine pricing could squeeze hospital margins, which rely significantly on pharmacy income.

The sector will be watching for any further observations from the court or the government on drug pricing policy.

Brokerages said the selloff may prove overdone if the court’s observations do not translate into formal price controls, but cautioned that sentiment could stay fragile in the near term.