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Two statements are followed by three Conclusions I, II and III. You have to consider the statements to be true, even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statements and indicate your answer accordingly. Statements: I. One of the biggest acquisitions in the Indian patient-care industry, the Rs. 4,500-crore Fortis-IHH deal could intensify competitive intensity in the space, with declines Friday in the shares of Apollo Hospitals, Healthcare Global, Max India and Narayana Hrudayalaya pointing to potential challenges for the incumbents.  II. After the completion of the deal, the IHH-Fortis group of hospitals will be among the biggest in the country, competing directly with some of the large listed hospital chains. The BSE Healthcare index also fell Friday, with hospital stocks at the vanguard of the downward journey.  Conclusions: I. Hospitals will be challenged as they will have to face someone like IHH, which has deep pockets and will be going into markets where they are present. II. Shares of Apollo, currently the largest hospital chain in India, fell more than 2%, closing at Rs. 975, followed by Max India that lost by 2.40%. III. Both are direct competitors of Fortis, Narayana and Healthcare Global also fell after the buyout announcement.

Two statements are followed by three Conclusions I, II and III. You have to consider the statements to be true, even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statements and indicate your answer accordingly. Statements: I. One of the biggest acquisitions in the Indian patient-care industry, the Rs. 4,500-crore Fortis-IHH deal could intensify competitive intensity in the space, with declines Friday in the shares of Apollo Hospitals, Healthcare Global, Max India and Narayana Hrudayalaya pointing to potential challenges for the incumbents.  II. After the completion of the deal, the IHH-Fortis group of hospitals will be among the biggest in the country, competing directly with some of the large listed hospital chains. The BSE Healthcare index also fell Friday, with hospital stocks at the vanguard of the downward journey.  Conclusions: I. Hospitals will be challenged as they will have to face someone like IHH, which has deep pockets and will be going into markets where they are present. II. Shares of Apollo, currently the largest hospital chain in India, fell more than 2%, closing at Rs. 975, followed by Max India that lost by 2.40%. III. Both are direct competitors of Fortis, Narayana and Healthcare Global also fell after the buyout announcement. Correct Answer Both conclusions 1 and 3 follow

The correct answer is option 5, i.e. Both conclusions 1 and 3 follow.

In this type of question, conclusion is not specifically mentioned. It needs to be deduced from the given statements.

From both the statements, we infer that with the announcement of the buyout of Apollo, a buzz has been created and as a result the share prices have fell down and has intensified the competition between the competitors.

Conclusion 2 can be rejected as it explicitly highlights the percentage of downfall in the shares which cannot be concluded as it is no where mentioned in the given statement.

Both conclusions 1 and 3 are in the same direction and are suitable conclusions based on the information stated. First conclusion deals with the fact that hospitals will be challenged and from conclusion 3, the fact that the competitors will be affected after the announcement.

As both 1 and 3 are relevant and 2 is irrelevant. Thus, the most correct answer choice is option 5 and rest of the options can be rejected.

Related Questions

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