Tuesday, 22 March 2011

Health stocks increase as 'misery' tax axed

 

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.

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.

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