Infosys ADR soars 40% after massive, short squeeze, triggers trading halt

Infosys ADR soars 40% after massive, short squeeze, triggers trading halt -

1) Infosys Ltd’s American Depository Receipt (ADR) surged sharply in early US trade, hitting a 52-week high as aggressive short-covering triggered a trading halt. The stock opened nearly 40 percent higher before volatility controls kicked in. At 21:37 IST, Infosys ADR was trading at $21.90, up $2.70, or 14.08 percent 2) Traders Moneycontrol spoke to said, the sharp move was driven by a short squeeze, after a major lender recalled a large chunk of stock lent out in the market. The sudden recall forced traders with short positions to rush into the open market to cover their exposure, bidding up prices sharply in a thinly traded counter. Infosys ADR typically sees daily volumes of around 7–8 million shares. However, the lender is rumoured to have recalled 45–50 million shares, a quantum far exceeding normal trading volumes. The mismatch between available liquidity and forced buying appears to have triggered the outsized price move. 3) Report sats on moneycontrol that 'Nothing good or bad' The spike in Infosys was purely technical and does not signal anything good or bad about the sector or the company. Accenture’s latest quarterly results, announced on December 18, offered a relatively benign read-through for the global IT services demand environment, which in turn has helped calm nerves around Indian IT stocks. 4) However, this was just intraday move and stock at the close settled around 6% up. 5) All this is for information and learning. this is not a buy/sell recommendation. thank you, Technofunda24