Infosys clarifies ADR rally, denies material developments after 56% surge to $30 in NYSE trade

Infosys responded to heightened market activity after a sharp rally in its American Depositary Receipts (ADRs) triggered two trading halts on the New York Stock Exchange on Friday. The ADRs surged as much as 56%, touching a 52-week high of $30, before trading was paused under the exchange’s limit-up, limit-down (LULD) mechanism. The company clarified that there were no undisclosed developments behind the sudden price movement and reiterated its commitment to regulatory compliance, seeking to reassure investors and curb speculation.

The Bengaluru-based software services firm moved swiftly to issue a notification to stock exchanges, underlining its focus on transparency.

“The Company has observed volatility in the price of its American Depositary Receipt (“ADR”) on the New York Stock Exchange (“NYSE”) on December 19, 2025, which resulted in two Volatility Trading Pauses (“Limit Up-Limit Down”/“LULD”) being triggered by NYSE. In this regard, the Company hereby clarifies that there are no material events that require disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Regulations”). This communication is being issued in the interest of transparency and to avoid any unwarranted speculation. Consistent with its practice, the Company will continue to adhere to its obligations under Regulation 30 of the SEBI Regulations,” Infosys said in a regulatory filing on Saturday.

An American Depositary Receipt (ADR) enables US investors to buy and sell shares of foreign companies on US exchanges without having to deal directly with overseas markets or foreign currencies.

Techincal snag

Separately, The Chronicle Journal reported that the abrupt surge appeared to stem from technical dislocations in market data and the actions of automated trading systems, rather than any change in Infosys’ business fundamentals. The report suggested that the near-50% intraday spike may have been triggered by a ticker-mapping error across several financial data platforms, potentially misleading algorithmic models into treating the stock as mispriced.

According to the report, in the days preceding the incident, multiple data providers had incorrectly linked the “INFY” ticker to an unrelated security, even as Infosys-specific financial information, earnings data and news continued to be attached to it. This mismatch may have been interpreted by trading algorithms as a pricing anomaly, prompting aggressive buy orders in a market that typically sees limited volumes. With liquidity thin, buying momentum quickly reinforced itself, pushing prices sharply higher until exchange-imposed volatility controls were activated.

Trading on Wall Street

Trading in Infosys ADRs was temporarily suspended after the security recorded an exceptionally steep intraday rise. US exchanges typically impose such halts when a stock experiences extreme price swings within a short period, allowing information to disseminate evenly and helping prevent disorderly trading.

Trading later resumed, with the ADRs retreating from their intraday peak. At the high point, volumes reached about 3.3 million shares and the relative strength index climbed to 85, signalling unusually strong demand. Despite the volatility, Infosys ADRs ended the day flat on a year-to-date basis. In India, Infosys shares closed 0.7% higher at ₹1,638 on the National Stock Exchange.

The unusual movement was not entirely isolated. Wipro’s ADRs also advanced, rising more than 7% to $3.08, while its shares on the Mumbai bourse ended 0.2% higher at ₹264.35. Brokers and analysts continue to monitor developments, even as Infosys maintains its stance of regulatory adherence and transparency.