Union Budget: Max Healthcare, other hospital stocks rise up to 4% as FM proposes to build 5 medical tourism hubs

Hospital stocks rise

• Hospital stocks rose after FM proposed 5 medical tourism hubs in Budget 2026
• Medical hubs to boost foreign patient inflow, revenues, and sector growth
• Experts: Hubs to boost jobs, enhance India's global healthcare standing

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The shares of hospitals jumped in trade on February 1 after Finance Minister proposed to build 5 medical value tourism hubs in India.

Max Healthcare Institute shares jumped more than 4 percent to trade at Rs 996.4 apiece. Narayana Hrudayalaya shares gained over 3 percent, while Apollo Hospitals Enterprises shares rose nearly 1.5 percent.

What FM Sitharaman said:

While presenting Union Budget 2026, Finance Minister Nirmala Sitharaman proposed to launch a scheme to support states in establishing five regional medical hubs to promote India as a hub for medical tourism services.

“In partnership with the private sector, these hubs will serve as integrates healthcare complexes that combine medical, educational and research facilities. There will be AYUSH centres, medical-valued tourism facilitation centres and infrastructure for diagnostics, post-care and rehabilitation. These hubs will provide diverse opportunities, job opportunities for healthy professionals including doctors,” the finance minister said today.

The medical hubs being built in partnership with the private sector may have boosted the hospital stocks, as they may increase foreign patient inflow, revenues and sector growth.

What experts say:

Budget 2026 highlights a structural transformation in healthcare, prioritising modern manufacturing, integrated infrastructure, workforce readiness and India’s global positioning, said Medical Technology Association of India (MTaI).

"The Budget emphasises allied healthcare professionals through skill development and workforce expansion. The government’s proposal to  set up regional medical tourism hubs will promote India as a global destination for medical and wellness travel. Government’s focus on building a domestic ecosystem for cancer drugs and technologies will lower costs and improve overall access to patients," it added.

By positioning India as a trusted global destination for high-quality, affordable care, the Budget reinforces the sector’s potential both as a growth engine as well as a contributor to India’s global healthcare leadership, said Sujay Shetty, Partner and Leader – Health Industries, PwC India.

"Establishing dedicated research centres with a specific focus on medical tourism will act as a significant growth catalyst for the healthcare ecosystem. Such centres are expected to generate substantial employment opportunities across clinical, paramedical, research and allied services, while, more importantly, strengthening India’s position as a global healthcare destination and contributing to sustained foreign exchange inflows," said Brijesh Gandhi, Partner, NPV & Associates LLP.

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