The “secret” behind these measures appears to be rooted in a curious technical flaw associated with ticker mapping. In the days leading up to the rally, several leading financial data providers, including Zacks Investment Research and MarketBeat, mistakenly began identifying the “INFY” ticker as “American,” Noble Gas said in a report.
“While the financial metrics and news headlines attached to the ticker still refer to Infosys’ massive AI investments and $75 billion market cap, the name mismatch is believed to confuse automated trading algorithms. These systems are designed to recognize “mispriced” assets or sudden momentum buys, possibly as a feedback buying signal. The loop that Friday Thin liquidity at the end of the year amplified the price action,” the report added.
Infosys ADR hit a fresh 52-week high of $30 on Friday, a 40% gain, forcing the exchange to halt trading on two occasions after volatility hit the roof. Chaos started in the early part of the trading session.
On Thursday, Infosys ADRs settled at around $19.18.
The sudden rally was short-lived as Infosys ADRs eventually rose $1.04, or 5.42%, to settle at $20.22 amid massive volume totaling 118.7 million.
Infosys Response
The company clarified that there are no material events requiring disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the exchange filing said.
Read more: Infosys ADRs: Unprecedented 40% spike, here’s what the company had to say at the trading break
Ripple effect
The Infosys event also had a ripple effect on Wipro ADRs, which rose 7% to end at $3.06, off the day’s high of $3.09.
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