Union Budget 2025: Healthcare stocks jump as govt plans cancer centers in district hospitals

Hospital stocks on Saturday (February 1) witnessed a surge in the stock market as the government announced significant plans to strengthen the healthcare sector. Finance Minister Nirmala Sitharaman, in her Union Budget 2025-26 presentation, announced plans to establish daycare cancer centers in all district hospitals over the next three years. A key component of this initiative is the launch of 200 cancer centers during the 2025-26 period, which ignited optimism in the market.

Shares of leading hospital and healthcare-related companies saw substantial gains following the announcement. Krsnaa Diagnostics rose by 5%, while Max Healthcare saw a 4% increase. Jupiter Life Line Hospitals climbed by 3.09%, GPT Healthcare gained 2%, and Indraprastha Medical Corporation surged by 4.04%. Apollo Hospitals Enterprise recorded a rise of 1.80%, and Thyrocare Technologies was up by 1.1%.

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While some hospital stocks gained in the wake of the announcement, the overall performance of healthcare stocks remained mixed. The strong market reaction to the cancer center initiative, however, signals positive investor sentiment toward the healthcare sector, particularly cancer care infrastructure.

In addition to the daycare cancer centers, the Union Finance Minister highlighted several other healthcare reforms aimed at expanding access to medical services across the country.

She revealed plans to create an additional 10,000 seats in medical colleges and hospitals in the coming year, as part of an ambitious goal to add 75,000 seats over the next five years.

The announcement of healthcare services for gig workers also caught the attention of market participants. Under the PM Jan Aarogya Yojana (PM-JAY), gig workers, who often lack adequate healthcare coverage, will now have access to essential healthcare services.

This initiative is expected to benefit nearly 1 crore workers, addressing a crucial gap in the healthcare system by providing access to medical care for an underserved and growing workforce. The inclusion of gig workers in the PM-JAY scheme is a welcome move, particularly in a country where the gig economy is expanding rapidly.

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The addition of daycare cancer centers in district hospitals is expected to significantly improve cancer care accessibility, especially for rural and underserved populations. The creation of new medical college seats will address the shortage of healthcare professionals, which has been a long-standing challenge in India.

The government's commitment to healthcare reforms has garnered positive reactions from healthcare professionals and industry leaders. The focus on cancer care and the inclusion of gig workers in healthcare programs are seen as steps in the right direction to improve the overall health of the nation.