The Indian stock market is witnessing a sharp surge in the valuation of the healthcare sector. This sector has performed extremely well in the last two years and it is still under the radar of many investors who are ready to pay a premium to have these stocks in their portfolio.

It all began with the Covid-19 pandemic which brought these stocks under the limelight.

The healthcare sector has been a popular one for investors because it is often less volatile than other sectors providing a steady rate of return.

The healthcare sector consists of companies involved in the development and manufacture of pharmaceuticals; biotechnology firms; suppliers of medical equipment; health insurance companies; hospitals; nursing homes; and other related businesses.

Some of the best healthcare-related stocks to invest in the Indian stock market are:

Sun Pharmaceutical Industries, Divi’s Laboratories, Cipla, Dr Reddy’s Laboratories, and Apollo Hospitals Enterprise are five of the top pharmaceutical India-based companies. They have a specialty in producing generic formulations, active pharmaceutical ingredients, pharma, and wellness products etc.

The best biotech stocks in India include Dr Reddy’s, Syngene International, Biocon, Sun Pharma Advanced Research, and Wockhardt Ltd. These companies provide integrated research, development, and manufacturing services for pharmaceuticals, biotech, nutrition, animal health, consumer goods, and specialty chemicals. 

It also produces medicines in the therapeutic areas of dermatology, cosmeceuticals, oncology, medical nutrition, osteoarthritis, and many more.

Poly Medicure Ltd, KMS, Medisurgi Ltd, GKB Ophthalmics, Raaj Medisafe India, and Centenial Surgical are the top companies listed in the medical equipment sector.

The best health insurance stocks that investors can keep an eye on are the LIC, the SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential, and Star Health and Allied Insurance Company.

Max Healthcare Ltd, Apollo Hospitals Enterprise, Aster DM Healthcare, Fortis Healthcare, Metropolis Healthcare, Dr Lal PathLabs Ltd, Narayana Hrudayalaya Ltd, etc. are some of the top hospital companies listed on the Indian Stock Exchange.

Among these Fortis Healthcare, Narayana Hrudayalaya, Global Health, Aster DM Healthcare, and Krishna Institute of Medical Sciences Ltd. are some of the hospital sector stocks with an upside potential of up to 27%, according to many analysts.