Infosys: News or some other reason...why did ADR fall 50%? Now important information has come.:

News Topical, Digital Desk : The sharp rise in Infosys ADRs on Friday may have been the result of a system error rather than the impact of any news, according to a report in the Chronicle Journal. This is further supported by the company's statement in which it informed the stock exchange that there was no price-sensitive information that had not been publicly disclosed. According to the report, this error became more pronounced due to low trading volumes and limited liquidity. Infosys ADRs saw a sharp rise of 50 percent on Friday, although prices later fell sharply.

What the Report Said

According to a report in the Chronicle Journal, the sudden surge in Infosys Ltd. 's ADRs during early trading on December 19, 2025, in the US market may have been caused by a data-feed error and algorithmic buying, rather than any specific news related to the company. The report states that the nearly 50% surge in Infosys ADRs was caused by a ticker-mapping error on several financial data platforms, which confused automated trading systems and triggered a self-reinforcing buying loop in low-liquidity counters. Simply put, the confusion led to systems mistaking a buy signal, and as prices rose, the confusion intensified, leading to a series of buy orders. This sharp fluctuation forced a trading halt on the New York Stock Exchange (NYSE). According to the report, for a few days prior to this surge, several data providers mistakenly associated the "INFY" ticker with another entity, while financial data and headlines related to Infosys continued to be tagged with it. This inconsistency confused algorithmic trading models. The impact was exacerbated by low trading volume and limited liquidity in Infosys ADRs. The ADRs, which closed at around $19.18 in the previous session, rose to $27 within minutes, after which volatility controls were implemented.

This theory remains unconfirmed The Chronicle Journal's theory of a system glitch has not yet been confirmed. However, Infosys informed the Indian stock exchanges on Saturday morning that it was complying with disclosure rules and that all price-sensitive news had been released, and that no news that could impact prices had been released.

The report raised questions . According to the Chronicle Journal, this incident highlights the vulnerabilities of the ADR market, as they trade when domestic markets are closed, increasing the risk of data errors, liquidity gaps, and automated trading feedback loops. The incident has drawn unusually high attention due to its involvement with a large global Indian tech company like Infosys. The report also states that US exchanges and regulators may review trading activity on December 19th to determine the role of data corruption and whether existing volatility safeguards worked properly.