Infosys Shares Jump 3% After US ADR Spikes 50% to 52-Week High – What Happened?

Infosys Issues Clarification After ADR Hits $30, Faces Two NYSE Pauses, While Indian Shares Gain 3%

Infosys shares climbed more than 3% in early trading on December 22 after a dramatic swing in its American Depositary Receipts (ADRs) on the New York Stock Exchange. The ADR price spiked sharply to a fresh 52-week high before cooling down, prompting the IT major to issue a clarification on the unusual trading activity.

On Friday, Infosys ADRs traded on the New York Stock Exchange jumped sharply. The price touched close to $30, marking a fresh 52-week high. At one stage, the ADR price rose by more than 50%. This sudden jump surprised traders as there was no new announcement from the company.

Sudden Spike Leads to Trading Pauses

The fast rise led to two short trading pauses on the NYSE. These pauses are part of stock exchange rules that control sudden price changes. After trading resumed, the ADR price came down from the high level. Infosys ADRs later closed at $20.22, still ending the session with a gain of over 5%.

The movement in the US market had an impact on Indian trading. Infosys shares listed in India rose more than 3% in intraday trade on Monday. The stock followed the positive signal from the ADR market, which often guides short-term moves.

Company Issues Clarification to Exchanges

After the unusual price action, Infosys clarified the stock exchange situation. The company said there were no major events or developments that required disclosure under SEBI Listing Obligations and Disclosure Requirements rules. Infosys explained that the statement was shared to keep the market informed and to avoid false rumours.

Infosys also said it continues to follow all disclosure rules under Regulation 30 of SEBI norms. This clear message helped calm investor concerns and brought stability to trading.

Market Sentiment and Expert Views

According to the market analysts, the ADR jump reflected an overall positive mood in global technology stocks. The strong performance of other global IT firms gave a boost to the whole sector's confidence. This optimistic mood helped buyers of Infosys ADRs.

Lower trading activity in overseas markets can also lead to sharp price changes. Short-term trades and automated buying likely added to the sudden rise.

Experts said the ADR movement did not change Infosys’ business outlook. The company’s core operations remained steady. Indian market trading stayed more balanced, which showed that the move was short-term in nature.

Infosys shares have shown recovery in recent weeks. Investors now look ahead to future earnings updates and business guidance for clearer direction.

The situation was a clear illustration of how foreign market developments could temporarily affect Indian equities. The immediate response of Infosys not only assured the investors of their faith but also secured their confidence.