Infosys shares rise 3% as stock ADRs hit 52-week high before cooling off; IT major issues clarification

Infosys share price rose over 3% in intra-day deals on Monday, December 22 after the IT major issued a clarification after Infosys ADRs surged as much as 56% to hit a high of $30 on the NYSE during Friday’s trade likely by a short-squeeze trigger.

Infosys ADRs later pared gains to settle at $20.22, up 5.42%.

Infosys said it observed volatility in the price of its American Depository Receipts (ADRs) listed on the New York Stock Exchange (NYSE) on December 19, which led to two volatility trading pauses being triggered by the exchange.

On the surge, Infosys, however, clarified that there were no material events that required disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

“This communication is being issued in the interest of transparency and to avoid any unwarranted speculation. Consistent with its practice, the company will continue to adhere to its obligations under Regulation 30 of the SEBI Regulations,” it said.

Infosys Legal Updates

In a separate exchange filing issued on Saturday, Infosys also provided updates on certain class action lawsuits that had already been disclosed in its financial statements. The company said that on December 18, the court granted final approval to the settlement of class action lawsuits filed against Infosys McCamish Systems LLC, a subsidiary, along with a few of McCamish’s customers.

Infosys noted that it had first disclosed in November 2023 that an agreement in principle had been reached with the plaintiffs in the lawsuits pending against Infosys McCamish Systems LLC and certain customers. The company further stated that on March 13, 2025, McCamish and the plaintiffs entered into another agreement in principle, which laid out the detailed terms of the proposed settlement covering class action lawsuits against McCamish as well as related lawsuits filed against its customers.

Under the settlement terms, McCamish agreed to pay USD 17.5 million into a settlement fund to resolve the matters. The court granted final approval for the settlement on December 18, 2025. Infosys added that if the settlement is not appealed within 30 days, it will become effective and resolve all allegations made in the class action lawsuits, without any admission of liability.

What is short squeeze

A short squeeze occurs when a stock with a large number of short positions rises sharply instead of falling, catching investors off guard. Short sellers, who borrow and sell shares expecting prices to decline, begin to incur losses as the stock moves higher. As prices continue to rise, brokers may issue margin calls, forcing these investors to quickly buy back shares to cap their losses. This urgent buying fuels further upside, creating a self-reinforcing feedback loop that squeezes more short positions out of the market. Such episodes often lead to intense price swings, elevated trading volumes and, in extreme cases, temporary trading halts by exchanges to restore stability.

Infosys: Share Price Performance

On the stock market, Infosys shares jumped as much as 3.2% to an intraday high of ₹1,639.60. The IT stock remains about 15% below its 52-week high of ₹1,982.55, recorded in January 2025, while its 52-week low of ₹1,307.10 was touched in April 2025. Over the past one year, the stock has declined 15%, though recent momentum has been positive, with gains of 11% over the past three months and more than 8% in the last one month.