Infosys ADR’s 40% Surge: What Really Happened on the NYSE

Infosys’ American Depositary Receipts (ADRs) saw an unusually sharp move on December 19, 2025. During early U.S. trading hours, the stock jumped nearly 40% on the New York Stock Exchange (NYSE), briefly touching a 52-week high of around $30.

The rally was so sharp that Infosys’ ADR trading was halted twice on the NYSE under volatility control measures.Prices later cooled and settled closer to the $20–22 per share range by the end of the session. Infosys later confirmed that there was no company announcement or business update behind the move.

Why This Move Was Only Seen in the U.S.

Since Indian markets were closed on Saturday, this entire episode played out only in the U.S. There was no live trading or price discovery on the National Stock Exchange of India (NSE) at the time.

With Indian markets closed at the time, the sharp move was seen only in the U.S. session. This suggests that factors like liquidity, positioning, and automated trading may have played a role, rather than any immediate company-specific development. Whether and how this volatility translates into the Indian-listed stock remains to be seen.

What Triggered the Sudden Spike?

The surge was caused by trading mechanics, not fundamentals.

1) Short Squeeze in Low Liquidity

According to market sources quoted in media reports, one contributing factor may have been a large share recall by a global lender. While unconfirmed, such an event, if it occurred could have increased short-covering pressure in an already low-liquidity trading session.

In such scenarios, short sellers may be compelled to buy back shares to close positions. Combined with thin pre-holiday volumes, this can lead to sharp price moves as buying interest temporarily overwhelms available supply.

2) Algorithms Made the Move Bigger

Once prices started rising fast, algorithmic trading systems kicked in. These systems often buy automatically when prices move quickly.

In low-liquidity conditions, this can push prices much higher than normal even without real news.

The Data Glitch That Added Fuel

Another important factor was a data-feed error.

Some market reports indicate that a ticker-mapping glitch briefly linked the “INFY” ticker to incorrect reference data. For automated trading systems, this looked like a major pricing mismatch.

As a result, more automated buy orders were triggered. This created a loop where rising prices caused even more buying.

The issue reportedly began around 10:15 AM ET, after which the NYSE stepped in with volatility halts to control the move.

Why IT Sector News Alone Doesn’t Explain It

There was positive sentiment in global IT stocks. Accenture had reported strong quarterly results, including solid growth in AI-related deals.

However, this cannot explain a 40% intraday jump. Other Indian IT ADRs like Wipro, TCS, and HCL traded normally. This confirms that the Infosys move was isolated and technical, not sector-wide.

What Do Trading Halts Mean?

Trading halts on the NYSE are automatic safety measures. They are used when prices move too fast in a short time.

A halt does not mean there is hidden bad news or a problem with the company. It simply allows markets to cool down and resume orderly trading.

Key Takeaways for Traders and Investors

Big price moves don’t always mean big news.

For traders:

• ADRs can move very differently from Indian shares
• Short squeezes can cause sharp but short-lived rallies
• Algorithmic trading and data errors can create extreme volatility
• Trading halts signal market stress, not business strength

The Infosys ADR spike on December 19, 2025 was not a re-rating of the company. It was a rare mix of a short squeeze, low liquidity, automated trading, and a data-feed issue all happening while Indian markets were closed.

Such moves fade quickly, but they offer a valuable reminder: understanding market structure is just as important as understanding earnings.