Infosys ADR Trading Briefly Halted After Massive 40% Rally, Wipro ADRs Surge; What’s Fueling the Rally?

Infosys ADR Rally: Infosys' American Depository Receipts (ADRs) surged nearly 40% on Friday, December 19, triggering a brief trading halt on the New York Stock Exchange. The sharp rally pushed Infosys ADRs close to their 52-week high of around $30, according to Bloomberg data.

The massive rally coincided with a jump in Wipro ADRs. However, trading resumed after some time, and ADRs gave most of the gains made earlier in the session.

The ADR are negotiable certificates issued by US banks to represent shares of multinational or foreign companies, based outside the US. These ADRs are traded on the US stock markets, just like common shares of US companies.

Back in India, Infosys shares closed 0.81% higher at Rs 1639.8 per share on BSE on Friday, December 19. The stock had touched an intraday high of Rs 1655 per share and an intraday low of Rs 1629 per share.

What Fuelled Infosys ADR Rally?

Infosys ADR rally during Friday's intraday trade session was driven by a short squeeze, and prices further rose by the US Stock Lending and Borrowing (SLB) mechanism, reported CNBC TV 18, citing experts. Due to the rally, Infosys ADRs peaked at a 52-week
high of $30.

The upbeat investor sentiment had fuelled the rally across IT stocks on BSE and NSE on Friday. Nifty IT index had ended 58 points higher on Friday with Persistent, Infosys, Tech Mahindra, TCS, Wipro, Mphasis, etc ending in green.

Accenture Strong Quarterly Results Boost Sentiment Across the IT Sector

The surge in Infosys ADRs on Friday came a day after Accenture reported strong quarterly results. Accenture Plc announced its first-quarter results and retained the full-year revenue guidance at a range of 2-5%.

Accenture's latest numbers pointed to strong demand for artificial intelligence-focused IT services, which supported sentiment around Infosys ADRs. Accenture shares were up about 1.7% around the same period, changing hands at $274.57 on the Nasdaq. The performance is often viewed as a guide for the wider global technology outsourcing industry.

In its fiscal 2026 forecast, Accenture projected full-year revenue growth between 2% and 5% in local currency. "Excluding an estimated 1% impact from its U.S. federal business, company continues to expect revenue growth to be 3% to 6% in local currency," the company filing said. Analysts frequently read such guidance as an indicator for Indian IT companies that compete in similar markets.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.