Why diagnostic stocks have corrected around 50% from their 52-week highs

Diagnostic stocks have corrected sharply over the past few months with stocks down between 40 and 50 percent from their 52-week highs.

The market is fearing disruptive pricing emerging in the diagnostic industry. Tata owned Tata 1MG has published an advertisement indicating that they are offering popular lab tests for consumers at just Rs 100 as they enter the Bengaluru market. The same tests cost anywhere between Rs 500 and Rs 650 in the market.