Leading Indian Fund Skyrockets on Surge in Hospital Stocks Amid Soaring Healthcare Investment | Markets Breakthrough

India Expands Free Health-Insurance for Seniors, Boosting Hospital Stocks

By Alex Gabriel Simon

October 1, 2024 | 10:55 AM IST

Prime Minister Narendra Modi’s administration has approved the expansion of a free health-insurance plan for all citizens aged 70 and above. This policy shift is anticipated to significantly benefit India’s healthcare sector and hospital stocks, according to insights from leading financial experts.

Satish Ramanathan, Chief Investment Officer for equities at JM Financial Asset Management Ltd., predicts a surge in healthcare spending as the country sees more people reaching retirement age over the next two decades. "People will spend on healthcare at an unprecedented rate," Ramanathan noted.

The expanded insurance plan could motivate regional governments to implement similar measures, thereby providing additional momentum for healthcare growth. This move comes as India faces the challenge of limited healthcare infrastructure, with only 1.3 hospital beds per 1,000 people.

Major players in the industry are already reaping benefits. Max Healthcare Institute Ltd. and Apollo Hospitals Enterprise Ltd. saw their stocks rise by 43% and 26%, respectively, in 2024.

Ramanathan pointed out the absence of a comprehensive safety net in India but acknowledged that the government is increasingly recognizing and addressing the issue.

The JM Flexicap Fund has performed exceptionally well, delivering over 40% returns this year, outpacing 96% of its peers, according to Bloomberg data. The fund’s holdings include shares of ICICI Bank Ltd. and REC Ltd., which gained 28% and 34%, respectively, in 2024, compared to a 19% rise in the NSE Nifty 50 Index. Additionally, the fund holds shares in Global Health Ltd., operator of Medanta Hospitals, and Fortis Healthcare Ltd.

This significant policy initiative and the ensuing investment growth underscore India’s advancing healthcare landscape.

First Published: October 1, 2024 | 10:55 AM IST

Original Story https://www.business-standard.com/markets/news/top-indian-fund-bullish-on-hospital-stocks-amid-rising-healthcare-spending-124100100293_1.html
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