New Delhi. The sudden increase of more than 38 percent in the American Depository Receipts of Infosys Limited in the American market surprised the investors. ADR reached around $27, after which the New York Stock Exchange stopped its trading for some time. The special thing was that on the same day in India, Infosys shares closed with only a slight gain and there was no news of any major corporate announcement.
This contradiction raised many questions in the minds of investors. Is this a change in the thinking of American investors regarding the Indian IT sector, or is it just the effect of global sentiment and trading technicals? To understand this, let us understand this entire incident in simple language in question-answer format.
What is ADR and why is it important
Through American Depository Receipt i.e. ADR, American investors can buy and sell shares of a foreign company on the American exchange. In this they neither have to worry about foreign exchange nor currency conversion. For this reason, the price of ADR sometimes moves in a different direction from that of domestic shares.
Why was there such a sharp rise in Infosys’s ADR?
This jump in ADR came not because of any company’s announcement, but because of better expectations regarding the global IT sector. Better-than-expected results from American IT giant Accenture gave investors confidence that stability in tech spending could return. Its direct impact was on those companies whose major business is related to North America.
Why did NYSE stop trading?
In America, when there is an unusual rise or fall in a stock in a very short period of time, the exchange stops trading. Its purpose is to give investors time for information and to avoid chaos in the market. The 38 percent rise in big IT stocks like Infosys falls in this category.
Does this mean Infosys’ fundamentals have changed?
No. So far there is no indication that there has been any sudden major change in the company’s business or financials. The limited rise of the stock in India also shows that this move was mostly related to the sentiment of the American market.
What impact did this have on the rest of Indian IT stocks?
After the results of Accenture, shares like TCS, Wipro, HCLTech and Tech Mahindra also showed slight rise. Investors believed that if the tech spending of global clients remains stable, then Indian IT companies can also benefit from it.
What does the status of Nifty IT index say?
The Nifty IT index has increased by about 7.5 percent in the last one month, but it is still down by about 10.5 percent in the entire 2025. That is, there are definitely signs of relief, but the whole picture still advises to be cautious.
What does this news mean for investors in India
This incident shows how global sentiment can affect Indian IT stocks. The rise in ADR is a sign, but it is too early to consider it a fundamental change. This news is hopeful for investors, but it will be more important to keep an eye on domestic results and order trends while taking decisions.
