Infosys ADR down over 6% today after Friday's massive surge

Infosys Ltd's American Depository Receipts (ADR) corrected 6% on Monday, December 22, quoting at $18.92 at 11.22 PM, down 6.43%. The slump in Infosys ADR comes after the massive surge on Friday.

As CNBC-TV18 earlier explained that the

sharp rally in Infosys ADR was driven by a short squeeze, with momentum amplified by the US Stock Lending and Borrowing (SLB) mechanism.

Later in its exchange filing, India's second largest IT services provider clarified that there are no material events that require disclosure under the Securities and Exchange Board of India (SEBI) Regulations, 2015.

It also said it observed volatility in the price of its ADR on the NYSE on December 19, which resulted in two volatility trading pauses being triggered by the stock exchange.

"The communication is being issued in the interest of transparency and to avoid any unwarranted speculation," it said.

In another filing on Saturday, Infosys updated on certain class action lawsuits

that were also mentioned in its financial statements.

On Monday, Infosys share price settled nearly 3% higher on the NSE, quoting at ₹1,686 apiece. The IT scrip has corrected nearly 13% in the last one year despite gains of almost 9% in the last one month.