Why Was Infosys Trading Halted In US After Sudden 40% Spike? All You Need To Know

Infosys Ltd’s American Depositary Receipt (ADR) surged more than 38% in early US trading, briefly touching nearly $27, before the New York Stock Exchange (NYSE) halted trading, according to Reuters. The sharp move came even as Infosys shares in India closed with modest gains, ending 0.7% higher at Rs 1,638 on the NSE. The unexpected rally and subsequent halt left investors asking what caused the spike and whether it reflects a broader shift in sentiment toward Indian IT stocks.

What Is ADR And Why Does It Matter?

An American Depositary Receipt (ADR) allows US investors to buy shares of foreign companies on American exchanges without dealing with overseas markets or currencies. ADR movements can sometimes diverge sharply from domestic share prices

due to differences in liquidity, sentiment and trading hours.

Why Was Infosys ADR Trading Halted On NYSE?

Trading in Infosys ADRs was halted after the stock posted an unusually sharp intraday jump. US exchanges typically pause trading when a stock shows extreme price volatility within a short span, to allow information to disseminate evenly and prevent disorderly trading. The halt was triggered after Infosys ADRs jumped over 38%, a move considered abnormal for a large-cap IT stock, especially in the absence of any company-specific announcement from Infosys.

What Sparked Rally In Infosys And Other IT Stocks?

The rally was driven by positive sentiment following Accenture’s first-quarter results. Accenture reported better-than-expected revenue growth of 5%, reassuring investors about near-term stability in global IT spending. Indian IT majors- including Infosys, TCS, Wipro, HCLTech and Tech Mahindra- rose as investors extrapolated Accenture’s performance to outsourcing-heavy peers, particularly those with strong exposure to North American clients.

What’s Happening With Nifty IT Index?

The broader Nifty IT index has been rebounding, gaining 7.5% over the past month and rising in five of the last six sessions. Despite the recovery, the index is still down 10.5% for 2025, reflecting lingering concerns over discretionary tech spending and global growth.

Does ADR Halt Affect Infosys Shares In India?

Not directly. Infosys shares in India saw only marginal gains, suggesting that the ADR spike was driven more by US market dynamics and sentiment than by any fundamental change in Infosys’ outlook.