NIFTY50: 19,365 ▼ 99 (-0.5%)
SENSEX: 65,151▼ 388 (-0.5%)
Namaste, friends!
Have you been thinking how the once-down-to-earth groceries are now high up on the pricing scale? Well, retail inflation in India was at 7.44% in July, with the figure nearing double digits in some states. With figures like this, budgeting probably feels like an extreme sport. While inflation may be climbing, the markets didn’t and ended in the red. More on that later.
- Benchmark indices closed lower amid weak global cues
- In all, 34 of the NIFTY50 stocks closed in the red
- Yield on US 10-year treasury bond rose to 4.31%, highest since October 2022
Among the NIFTY sectoral indices, PSU Bank (+1.4%) and Realty (+0.1%) were the top gainers, while FMCG (-0.8%) and Oil & Gas (-0.8%) were the top losers.
| Top gainers | Today's change |
| Adani Ports | 810 ▲ 34 (+4.4%) |
| Titan | 3,071 ▲ 60 (+2.0%) |
| Adani Enterprises | 2,477 ▲ 32 (+1.3%) |
| Top losers | Today's change |
| ITC | 440 ▼ 9.3 (-2.0%) |
| LTIMindtree | 5,091 ▼ 106 (-2.0%) |
| Power Grid | 243 ▼ 4.5 (-1.8%) |
What’s trending
⭐ E-bus stocks gain on new govt scheme
Shares of companies in the e-bus segment like Ashok Leyland and Olectra Greentech were up by almost 1% today, amid weakness in the broader market. This came after the Union Cabinet approved the PM e-Bus Seva Scheme with a total outlay of ₹57,613 crore. As part of the scheme, approximately 10,000 new e-buses will be rolled out across the nation, which is expected to benefit e-bus makers.
⭐ Lupin gets USFDA nod for drug
Pharma major Lupin has received approval for its Metoprolol Succinate Extended-Release Tablets, which treats hypertension. The annual sales for this drug in the US were $305 million as of June 2023. The company also launched its Tiotropium Bromide Inhalation Powder for the treatment of chronic obstructive pulmonary disease. The drug had an estimated annual sales of $1,264 million in the US as of March 2023. Lupin’s shares hit their 52-week high intraday but closed lower by 2%.
⭐ RCF rises on for govt nod for new plant
Rashtriya Chemicals and Fertilisers (RCF) shares were up by 2.7% after the company received environmental clearance to set up a nano-urea plant at its Trombay facility in Mumbai. The state-owned fertiliser producer anticipates the new plant to have an annual production capacity of over 27,000 kilolitres of fertiliser.
⭐ Inox Wind shares fall after capital infusion
Shares of the wind energy-solutions provider declined over 6% intraday after its promoters infused ₹500 crore in the company for debt repayment. As per management, this strategic move is a significant step towards becoming net-debt free. In FY23, the company had total borrowings of ₹2,382 crore. However, Inox Wind shares traded lower as funds were raised via equity share sale, leading to equity dilution.
In Focus
Hospital industry set for growth spurt?
The Indian hospital industry seems to be in the pink of health. According to rating agency ICRA, it is on track to clock revenue growth of 8-10% in FY24. This is positive for the industry, which includes listed hospital chains like Apollo Hospitals, Fortis Healthcare, Shalby, Narayana Hrudayalaya, and KIMS. These stocks have already seen strong traction this year, rising 11% to 30% in 2023. Let’s look at the key factors that could support the industry in the year ahead.
Improvement in key metrics
As per the report, the industry could see 5-7% rise in average revenue per occupied bed (ARPOB) in FY24 despite the high base of last year. This growth is expected owing to a diverse specialty mix as most hospital-chains nowadays offer multi-speciality healthcare services as well as annual price revisions by companies to offset cost inflation.
Besides this, hospitals could see strong occupancy at 60-65% in the ongoing fiscal year, building on the 65.1% occupancy in FY23, mainly due to market share gains by organised players. In addition, sustained demand for healthcare services as well as evolving patient preference towards large hospitals due to health insurance could aid occupancy rate.
Other key factors
According to ICRA, most major hospital chains are expanding and plan to add a total of about 8,400 beds in the next four years to boost their potential revenue. Further, larger companies are exploring inorganic growth opportunities, including merger and acquisitions of smaller hospitals chains. This could add additional beds and increase business revenue.
Other than this, hospitals could see improved in-patient footfalls amid a rise in lifestyle-related diseases in recent years. Also, medical tourism is on the rise in India as the country offers excellent medical services at lower costs. Further, the higher penetration of health insurance and increased healthcare awareness, especially after the Covid pandemic, is expected to benefit hospital operators.
The above factors paint a rosy picture of the Indian hospital industry. However, regulatory norms like price cap on drugs and treatment costs could adversely impact companies.
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