Sembcorp Industries Ltd (U96.SI) experienced a significant drop of 3.21% in early trading on Wednesday, following a substantial gain of 7.6% the previous day. The stock's volatility comes in the wake of a major announcement regarding the company's expansion into green energy projects in India.

On Tuesday, Sembcorp Industries revealed that its wholly owned subsidiary, Sembcorp Green Hydrogen India, had entered into a joint venture agreement with Bharat Petroleum Corporation Limited (BPCL), a state-owned Indian oil and gas company. The partnership aims to explore renewable energy and green hydrogen projects across India, supporting the country's energy transition and development goals. This news initially drove the stock to close 7.6% higher at S$6.23 on Tuesday.

However, the early morning plunge on Wednesday suggests a potential market correction or profit-taking by investors. Despite the promising outlook of the joint venture, the company stated that it is not expected to have a material impact on Sembcorp Industries' earnings per share and net tangible assets per share for the financial year ending December 2025. This revelation may have prompted some investors to reassess the immediate financial implications of the deal, leading to the current downward pressure on the stock price.