A sudden and unexpected surge in Infosys' American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE) has left many wondering what could have caused such a drastic move. The company's ADRs soared 40% to a fresh 52-week high of $30, only to settle at $20.22, up 5.42% from the previous day.
A report has linked the surge to a bizarre technical glitch involving ticker mapping. It appears that 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. This mismatch is believed to have confused automated trading algorithms, leading to a feedback loop that amplified the price action.
In the days leading up to the surge, the financial metrics and news headlines attached to the ticker still referenced Infosys's massive AI investments and $75 billion market cap. However, the name mismatch is thought to have triggered automated trading systems to buy, creating a surge in the thin liquidity of a year-end Friday.
The company has clarified that there were no material events that required disclosure under the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015. The exchange filing stated that the company was not aware of any reason why the ADRs had surged so dramatically.
The Infosys event had a ripple impact on Wipro ADRs as well, which ended 7% higher at $3.06 after hitting the day's high of $3.09. This suggests that the technical glitch may have had a broader impact on the market.
Remember, this is a developing story, and the reasons behind the surge are still being investigated. As with any market movement, it's essential to do your own research and not jump to conclusions based on a single event.
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