New Delhi, Oct. 9 -- Hospital stocks rallied on Friday after the government decided to limit trade margins on non-scheduled anti-cancer drugs to 30%, a move expected to lower the prices of several cancer medicines by 20-70% and save patients an estimated Rs.2,500 crore annually. The decision lifted investor sentiment, although brokerages flagged potential margin pressure and said the full impact on hospital earnings would depend on further details.

Fortis Healthcare shares surged 5.3% to Rs.805.15, followed by Manipal Health Enterprises, which gained 4.3% to Rs.715.50. Krishna Institute of Medical Sciences advanced 4.2% to Rs.716.35, while Max Healthcare Institute rose 4.4% to Rs.915. Apollo Hospitals Enterprise shares climbed 4% to Rs.7...