Representative imageThe sudden surge pushed the American Depositary Receipts (ADRs) to a 52-week high of $30 and forced the New York Stock Exchange to halt trading due to extreme volatility, according to ET. The sharp move took place during a low-liquidity holiday session and was not linked to any new announcement from the company.Why did the rally raise eyebrows?The speed and scale of the rise caught traders off guard because there was no obvious trigger. Analysts pointed out that such extreme swings are u ...

"The "mystery" behind the move appears to be rooted in a bizarre technical glitch involving ticker mapping. In the days leading up to the surge, several prominent financial data providers—including Zacks Investment Research and MarketBeat—began erroneously identifying the "INFY" ticker as "American Noble Gas Inc." in their automated reports," it said in a report."While the financial metrics and news headlines attached to the ticker still referenced Infosys’s massive AI investments and $75 billion market ca ...

Core Viewpoint - The recent surge in Infosys' American Depositary Receipts (ADRs) by as much as 40% within minutes of trading opening has raised concerns about short selling, automated trading systems, and market liquidity issues, prompting a trading halt by the NYSE [9][10]. Group 1: Short Squeeze and Market Dynamics - A short squeeze is identified as a primary reason for the rapid price increase, where investors betting against the stock are forced to buy back shares at higher prices, further driving up demand and prices in a self-reinforcing cycle [10]. - Traders reported that a major lender recalled 45–50 million Infosys ADR shares, significantly higher than the typical daily trading volume of around 7 to 8 million shares, which may have pressured short sellers to buy back shares quickly [10]. Group 2: Technical Errors and Algorithmic Trading - A technical error involving a ticker mapping glitch mislabelled Infosys' ticker on various platforms, leading to confusion among automated trading systems, which may have interpreted the mismatch as a strong buy signal [5][10]. - The financial metrics and news headlines associated with the incorrect ticker still referenced Infosys, including its $75 billion market capitalisation and AI investments, which likely contributed to aggressive automated buying [5][10]. Group 3: Market Sentiment and Company Response - The Indian IT sector saw a slight uptick following Accenture's better-than-expected quarterly results, but this alone does not account for the significant movement in Infosys ADRs [7][10]. - Infosys clarified that there were no material developments behind the price volatility, stating that the trading activity did not require disclosure under SEBI regulations [8][10].