NYSE Halts Infosys ADR Trading Twice

On Friday, December 19, 2025, the market experienced an unusual session. The American Depositary Receipts (ADRs) of Infosys Ltd (NYSE: INFY) touched a 52‑week intraday high of $30. Overall, the price surged by around 40%–56% before settling back to normal. The spike not only compelled the New York Stock Exchange (NYSE) to halt trading twice but also sparked demand for market scrutiny and highlighted vulnerabilities in ADR trading.

A Volatile Friday: What Happened On NYSE

Infosys ADRs started the trading session with an opening interest but quickly escalated into one of the most abrupt price moves in recent memory. Within minutes of the NYSE opening bell, prices climbed from roughly $19.18 in the prior session to nearly $30, a jump analysts described as unexplained and outsized for a mega‑cap IT services stock.

As the ADRs breached predefined risk bands, NYSE’s Limit Up–Limit Down (LULD) mechanism was triggered twice to pause trading and prevent what regulators term ‘disorderly markets.’ Such trading halts are safeguards designed to temporarily suspend trading when prices move beyond set thresholds in short order.

Despite the dramatic intraday spike, Infosys ADRs eventually settled around $20.22 at the close, a modest rise of about 5.4% on significantly elevated volume (nearly 118.7 million shares traded, well above normal levels).

Company’s Response to the Event

On December 20, Infosys, in its regulatory filing, clarified that the surge was not due to any material corporate developments that would require disclosure under Indian securities rules (SEBI LODR).

The statement was meant to prevent market speculation and assure investors that the spike was not because of earnings beats, major contracts, or any strategic development in the global business operations of Infosys.

What Is The Take Of Market Analysts?

Post clarification from Infosys, market analysts have cited several explanations:

1. Data Glitches

As per The Chronicle Journal report, the spike may be linked to a ticker‑mapping error across major financial data platforms.

Usually, if there is an incorrect ticker identification, it causes automated models to misinterpret pricing signals and prompt buy orders that feed on themselves. The scenario is more common in thinly traded ADR markets where liquidity is limited.

Since ADRs trade outside normal hours for the home market (India), they can be more exposed to data inconsistencies, liquidity gaps and automated trading feedback loops when ordinary institutional participants are inactive.

2. Possible Short Squeeze

Several media articles have also cited short‑squeeze mechanics behind the move. For those who are unaware, a short squeeze occurs when traders betting against the stock (short sellers) are forced to cover their positions as prices surge abruptly. In thin‑liquidity conditions, especially near year‑end and during holiday sessions, forced buying can amplify price movements far beyond normal trading behaviour.

3. Low Liquidity and Seasonal Trading Patterns

Friday’s trading occurred amid holiday‑period thin liquidity, with many institutional traders absent. Such conditions can magnify even modest buying pressure into outsized price swings, especially in segments like ADRs that lack the depth of major U.S. domestic equities.

Disconnect With Indian Market

What's interesting is that despite the movement in the Infosys ADR, Infosys shares traded almost flat on the Indian stock exchanges. Infosys’ ordinary shares on the NSE and BSE finished Friday’s session up only about 0.7%.

For investors and traders, it is important to note that US ADR quotations can behave independently, particularly when Indian markets are closed and US markets trade in isolation.

Broader Market And Sector Context

While the Infosys ADR surge was isolated and unexplained by fundamentals, broader market sentiment that week had been mildly positive for technology and Indian IT names. Global peers such as Accenture reported stronger‑than‑expected AI‑driven revenue growth, which traders interpreted as supportive for IT demand, though this was unlikely to be the primary driver for the spike.

In the US, other Indian IT ADRs also saw movement: Wipro ADRs jumped notably, highlighting how automated systems sometimes treat correlated baskets of names together in high‑frequency trading environments.

Sources:

The Economic Times
Business Today
The Economic Times
Business Today