Shares of Apollo Hospitals Enterprise Ltd fell as much as 1.22 per cent intra-day after gaining 3.28 per cent earlier in the session.
The stock touched a low of Rs 1,431.55, its lowest intra-day level since December 24.
However, the shares recovered to close 1.35 per cent higher at Rs 1,466.75 on the BSE.
Trading volumes surged by more than 6 times on Tuesday.
Media reports said income-tax officials conducted raid at Apollo Hospitals offices in Chennai.
A spokesperson for the Apollo Group said the company will be issuing an official statement.