Stock Market Today, Dec. 19: NYSE Halts Infosys Trading After ADRs Spike

Infosys (NYSE:INFY), provides consulting, technology, outsourcing, and digital services globally. Infosys IPO'ed in 1999 and has grown 3,362% since going public. Based in India, Infosys trades American Depositary Receipts (ADRs) in the U.S.

Friday’s regular session saw Infosys ADRs spike over 50% intraday before the New York Stock Exchange (NYSE) briefly halted trading. This highlighted volatility and structural issues in U.S.-listed foreign shares. Trading volume reached 115.6 million shares, coming in about 738% above versus its three-month average of 13.8 million shares.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) rose 0.88% to 6,835, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.31% to close at 23,308. Among information technology services peers, Cognizant Technology Solutions (NASDAQ:CTSH) and Wipro (NYSE:WIT) advanced 1.97% and 6.99%, respectively.

What this means for investors

Infosys ADRs surged to a 52-week high on Friday's intraday trading, but there's no clear driver for the sudden price increase. While there is increased optimism around IT stocks, Indian competitors such as Cognizant Technology Solutions and Tata Consultancy Services (NSEI:TCS) did not post similar gains.

Infosys shares in India gained only about 0.7%. This raises questions about structural issues with ADRs. Investors considering adding Infosys or another ADR to their portfolio might weigh this added volatility into their decision-making.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Cognizant Technology Solutions. The Motley Fool has a disclosure policy.