Sumitomo Chemical shares soar 11%, record biggest single-day surge in nearly 2 years. Here’s why

The shares of Sumitomo Chemical India rallied sharply by around 11% on Friday, with the stock on track to record its biggest single-day surge since September 2024, following a key partnership by its parent company's Korean subsidiary and heavy trading volumes.The shares of the company, which is associated with agrochemicals, biopesticides, feed activities, household insecticides and animal nutrition sectors, soared to Rs 488.65 apiece on the NSE on Friday.Why are Sumitomo Chemical India shares up today?The sharp surge in Sumitomo Chemical India shares comes after its Japanese parent, Sumitomo Chemical, said that its Korean subsidiary, Dongwoo Fine-Chem, has signed a joint venture agreement with Samsung Electro-Mechanics to establish a joint venture company to engage in the business of glass core substrates for advanced semiconductor packages.

“In recent years, driven by the growing adoption of generative AI, expanding data centre investments, and rising demand for high-performance computing, semiconductors have been required to achieve even greater integration and lower power consumption.

As a result, semiconductor package substrates are also needed to support further increases in size and density.

This has led to glass core substrates garnering attention as a technology that supports next-generation semiconductor packages,” the company said in a press release.Also read: Gujarat accelerates semiconductor ambitions as Sumitomo Chemical weighs deeper investmentGlass core substrates are next-generation semiconductor package substrates which are characterised by excellent rigidity, dimensional stability, low warpage and low thermal expansion, which contribute to larger package sizes, improved reliability and higher-density wiring, the company said.

“In particular, AI-related semiconductors are expected to see even greater package enlargement and higher density going forward, and glass core substrates, which are a promising option well suited to these requirements, are expected to experience a full-scale market launch,” it added.Sumitomo Chemical said that the new company to be developed as part of the joint venture is scheduled to establish a supply system by the second half of the fiscal year 2027 with a share capital of KRW 482,100 million.Sumitomo Chemical India stock performanceThe sharp surge in Sumitomo Chemical India’s share price also comes amid heavy volumes.

More than 123 lakh shares of the company worth around Rs 589 crore have already been traded, as per data on the NSE at 12.45 pm.The stock has gained around 10% over the past week but is down nearly 1% over the past month.

It is up about 2% so far in 2026.

Over the longer term, it has fallen 9% in the past year, while rising 10% over three years and 24% over five years.

The company’s current market capitalisation is nearly Rs 23,747 crore.Also read: Hitachi Energy, GE Vernova, Siemens Energy, other power equipment stocks crash up to 10%.

Here’s why(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

These do not represent the views of The Economic Times) ...