Infosys ADR Halts After 50% 'Mystery' Surge on NYSE

A Glitch Shakes Wall Street

On the morning of December 19, 2025, the New York Stock Exchange witnessed an extraordinary event that sent ripples through the global tech sector. American Depositary Receipts (ADRs) of Indian IT giant Infosys (NYSE: INFY) experienced a sudden and massive surge of nearly 50%, climbing from a previous close of $19.18 to an intraday high of almost$30.00 within minutes of the opening bell. The move, lacking any fundamental news or corporate announcement from Infosys, triggered multiple 'Limit Up-Limit Down' (LULD) volatility halts, leaving investors and analysts perplexed.

This 'mystery move' created a significant disconnect between the company's U.S.-listed securities and its underlying shares on the National Stock Exchange (NSE) in India, which remained stable. The incident has reignited debates about the structural vulnerabilities of ADRs, the integrity of financial data, and the unpredictable nature of high-frequency algorithmic trading.

Anatomy of a Technical Anomaly

The chaos began around 10:15 AM ET, seemingly sparked by a technical glitch in data feeds. Investigations suggest the root cause was a ticker mapping error. Several prominent financial data providers erroneously identified the 'INFY' ticker as 'American Noble Gas Inc.' in their automated systems. While the associated financial data still reflected Infosys's $80 billion market capitalization, this name mismatch is believed to have confused high-frequency trading (HFT) algorithms.

These automated systems, programmed to detect pricing anomalies and momentum shifts, likely interpreted the data discrepancy as a trading signal. This initiated a buying cascade that was amplified by low year-end trading liquidity. With fewer institutional market makers active, the algorithmic buying pressure was able to push the price to extreme levels before exchange circuit breakers kicked in to pause trading.

The Time Zone Disadvantage

The situation was made worse by the 10.5-hour time difference between New York and Bengaluru. With the Indian markets already closed for the day, Infosys management could not issue an immediate clarification to both markets simultaneously. This communication vacuum allowed the erroneous price action to persist, untethered from the fundamental value established on the NSE, where the stock had closed with a minor 0.7% gain.

This event underscores a critical risk in ADR trading: the 'information gap' that exists when the home market is closed. During these hours, ADRs are susceptible to price discovery vacuums where technical glitches, rumors, or stale news can cause extreme volatility without an anchor to the underlying asset's true value.

Market Impact and Key Figures

The sudden spike had immediate consequences for various market participants. Retail investors who bought into the rally near its peak faced significant losses once the price corrected. Conversely, some HFT firms that capitalized on the initial moments of the glitch may have secured profits, though such trades are now under regulatory review. The event also cast a shadow over other Indian ADRs, with Wipro (NYSE: WIT) and ICICI Bank (NYSE: IBN) experiencing brief sympathy spikes as algorithms correlated the move across the sector.

Broader Implications for ADRs and Algorithmic Trading

The Infosys halt is not an isolated case but a powerful example of the growing risks in a market dominated by automated systems. It demonstrates that even a stable, blue-chip company can fall victim to the complexities of cross-border listings and data integrity failures. The incident fits a pattern of 'flash events' where a single incorrect data point can trigger a market-wide spasm.

This has prompted calls for greater regulatory oversight. The U.S. Securities and Exchange Commission (SEC) and the NYSE are expected to launch a formal review of the trading activity. The investigation will likely focus on the role of third-party data providers and the effectiveness of existing circuit breakers. There may be a push for stricter 'kill switches' for HFT algorithms and more robust data verification protocols to prevent similar events.

Conclusion: A Cautionary Tale for Investors

The Infosys ADR surge of December 19, 2025, serves as a landmark case study on the risks of modern, globalized trading. It highlights that ADRs are not perfect proxies for their underlying shares and are subject to unique risks, including data errors, currency fluctuations, and time-zone information gaps.

For investors, the key takeaway is the need for caution. When trading ADRs, especially at the market open, it is crucial to be aware of the potential for extreme volatility driven by factors unrelated to the company's fundamentals. Using limit orders instead of market orders can provide a layer of protection against being caught in such sudden price spikes. As technology continues to accelerate the speed of trading, the accuracy of the information driving it has become more critical than ever.