On December 19, 2025, Infosys’ American Depositary Receipts (ADRs) stunned Wall Street with one of the most mysterious moves of the year. The stock soared 40–56% intraday, briefly touching a 52-week high near $30, before crashing back to around $20.22 — all within hours. The extreme volatility was so intense that it triggered two trading halts under the NYSE’s Limit Up–Limit Down (LULD) mechanism.
What made this rally shocking?
👉 There was no news. No announcement. No deal. No earnings.
🚨 No Trigger, No Disclosure — Just Chaos
As speculation exploded, Infosys quickly issued a regulatory clarification, stating that no material event required disclosure under SEBI (LODR) Regulations, 2015. Company officials stressed that the filing was purely for transparency, aimed at preventing misinformation and calming the market.
This confirmed one thing clearly:
The rally had no fundamental trigger.
The episode has now become a textbook example of ADR-specific risk, especially for Indian IT giants trading in US markets where algorithmic trading and sentiment-driven momentum can overpower fundamentals.
📊 Why Did the Market React Then?
While Infosys itself reported nothing new, the broader IT sector was buzzing.
Just days earlier, Accenture posted a strong AI-led revenue beat, reigniting optimism around global IT spending. That enthusiasm likely spilled over into Indian IT ADRs, including Infosys — though analysts caution there’s no proven direct link.
Still, the timing added fuel to the fire.
💼 Infosys Fundamentals: Quietly Strong
Ironically, Infosys didn’t need hype to impress.
In Q4 FY25 (ending September 2025), the company delivered:
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Net profit: ₹7,969 crore (above estimates)
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Revenue: ₹38,821 crore (up 1.3% YoY)
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BFSI growth: 2.3% in constant currency — best in 7 quarters
AI remains a key growth lever:
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11% of new deals came from AI-led bookings
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Advanced AI revenue doubled YoY to $1.1 billion
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$3.8 billion in Q1 deal wins, with 55% net-new deals
Despite flat global tech spending, GenAI traction is real.
🌍 Bigger Picture: A Warning for Global Investors
Interestingly, Infosys shares in India remained stable, highlighting how ADRs can behave very differently from domestic stocks. Experts now expect:
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Higher margin requirements for Indian ADRs
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Closer scrutiny of algorithm-driven spikes
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A possible exchange-level probe into the halts
Analysts remain optimistic long-term, projecting FY26 EBIT margins of 20–22% as revenues accelerate.
This wasn’t an Infosys story —
it was a global trading reality check.
In a world of AI-driven trades and cross-border access, even blue-chip stocks can move violently without news. And that’s the new risk investors must learn to price in.
Disclaimer: Yeh views market experts ke hain and not of trueincome. Investment karne se pehle certified advisor se consult zaroor karein.