Indian Stock Market News: Why Pharma, Hospitals And Diagnostics Remain Long-Term Compounders

Healthcare and pharma stocks have delivered strong gains, supported by robust earnings growth, improving profitability, and favorable currency movements. While several hospital stocks have already reached valuation targets after a sharp rally, the broader healthcare sector continues to offer attractive long-term opportunities. According to Prateek Nigudkar, Senior Fund Manager, Shriram AMC, India's pharmaceutical industry remains a steady compounder, driven by double-digit domestic growth, rising demand for chronic therapies, and the emergence of new drug categories such as GLP-1 treatments. Despite concerns around US regulations and tariffs, Indian generic drug manufacturers continue to play a critical role in global healthcare. Nigudkar remains positive on pharma, hospitals, and diagnostics, while emphasizing a selective approach within the hospital space