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This is an archive article published on March 22, 2011

Health stocks jump as ‘misery’ tax axed

Private healthcare firms' stocks,including Fortis Healthcare,today rose by over 3%.

Private healthcare firms’ stocks,including Fortis Healthcare,today rose by over 3 per cent on BSE,buoyed by the government’s decision to rollback 5 per cent service tax imposed on private hospitals with 25-bed or more capacity.

Cheering the decision,health care investors went on a buying spree,pushing the Fortis Healthcare by 2.23 per cent to Rs 151.30 a piece on Bombay Stock Exchange (BSE).

During intra-day trading,the scrip had surged by 3.14 per cent to Rs 152.65 a share.

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Lotus Eye Care Hospital,too,jumped by 3.13 per cent to Rs 11.55 a share,while Apollo Hospitals Enterprise went up by 0.52 per cent to Rs 487.05 a piece.

Finance Minister Pranab Mukherjee today announced withdrawal of the proposed 5 per cent service tax on diagnostic services as well as air-conditioned hospitals with 25-bed or more capacity.

Private health care chains and diagnostics labs have welcomed the government’s decision as medical bills are now not going to go through the roof.

Meanwhile,the 30-share BSE index Sensex closed 149.25 points up at 17,988.30 level today.

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