Healthcare Stocks Get A GST Boost: Index Nears Breakout; Bull Run Likely In Apollo, Fortis, Dr Lal, Poly Medicure

India’s healthcare sector has received a boost from the latest round of Goods and Services Tax (GST) reform.

The government has lowered GST across several products and services in the healthcare basket, making treatments and coverage more affordable while creating volume opportunities for companies.

What Got Cheaper

Health and life insurance, previously taxed at 18%, will now attract no GST at all. Thermometers have been reduced from 18% to 5%. Medical-grade oxygen, diagnostic kits, reagents, glucometers, and test strips have all seen rates cut from 12% to 5%. 

Corrective spectacles also shift from 12% to 5%. Finkhoz said these cuts translate into lower costs for consumers and stronger demand across healthcare services and products.

Technical View

SEBI-registered platform Finkhoz said the Nifty Healthcare index is consolidating just below the key resistance zone of 14,800–15,000, noting that the index is forming an inverted head-and-shoulders pattern, with the neckline around the same zone. 

A breakout above 14,800–15,000, if supported by volume, could trigger a rally toward 15,800–16,200, while strong support is placed at 14,000.

Stocks To Watch

Private hospitals, such as Apollo Hospitals and Fortis Healthcare, could see an increase in demand as wider insurance coverage makes it easier for patients to choose private care. 

Diagnostic players like Metropolis Healthcare and Dr Lal Pathlabs are also likely to benefit, with cheaper kits expected to drive more people toward regular testing and higher volumes. 

Medical device makers such as Poly Medicure are positioned to benefit from lower GST on devices and reagents. Optical businesses, including Titan Company’s Titan Eye+, may also see a lift from cheaper spectacles. 

Insurance players like HDFC Life, ICICI Prudential, and SBI Life could be major winners, with tax-free health insurance described by Finkhoz as a “game-changer.”

Analyst View

Finkhoz said the GST cuts are not only about affordability but also about broadening access to healthcare. 

More insurance adoption, cheaper diagnostics, and lower device costs are expected to create steady growth opportunities across healthcare and insurance. “For investors, healthcare just got its booster shot,” the analyst concluded.

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