Infosys ADR Surges 50% Friday; NYSE Halts Trading Twice Amid Investor Frenzy

Infosys Ltd.'s American Depositary Receipts (ADRs) experienced a dramatic surge of up to 56% on the New York Stock Exchange on Friday, December 19, 2025, briefly reaching a 52-week high of $30 before triggering multiple volatility halts. The sharp rally, which occurred during U.S. trading hours while Indian markets were closed, contrasted starkly with the modest 0.7% gain in Infosys shares on the NSE, closing at Rs 1,638. Trading resumed after the pauses, but the ADRs later surrendered most gains, ending around 5-14% higher.

Analysts and reports attributed the spike primarily to technical factors, including a possible data-feed glitch or ticker-mapping error across financial platforms that confused algorithmic trading systems. Some sources pointed to a short squeeze amplified by stock lending recalls and high-frequency trading in a thinly traded instrument. No company-specific news or fundamental developments were announced to justify the move.

Infosys promptly issued a clarification to Indian stock exchanges, stating there were no undisclosed price-sensitive developments. The company emphasized its commitment to regulatory compliance and aimed to curb speculation amid the unusual volatility. This reassurance helped stabilize sentiment.

Also Read: Ola Electric Completes Founder Share Monetisation to Fully Repay Rs 260 Crore Loan

The incident highlighted vulnerabilities in ADR trading, where prices can detach from underlying shares due to time-zone differences, lower liquidity, and reliance on automated systems. Similar "phantom" moves have affected other foreign ADRs in 2025, prompting expectations of regulatory reviews by the NYSE and U.S. authorities.

Other Indian ADRs, such as those of Wipro, saw sympathy spikes of over 7% during the event, reflecting correlated algorithmic behavior in the IT sector. The episode underscored ongoing challenges in cross-border listings amid evolving market dynamics.

Also Read: Hero MotoCorp Shares Drop After Jefferies Flags Stretched Valuations