NYSE Halts Infosys ADR After 40% Surge: Short Squeeze Blamed

• NYSE halted Infosys ADR trading after a nearly 40% surge to $27, driven by a short squeeze and US Stock Lending and Borrowing (SLB) mechanism.
• A short squeeze occurs when lenders recall borrowed shares, forcing short sellers to buy them back, intensifying price rallies.
• The surge followed positive sentiment in IT stocks after Accenture reported better-than-expected Q1 revenue growth of 5%.
• Accenture noted flat overall tech spending but strong traction in Generative AI, contributing 11% to new bookings and 6% to revenue.
• Analysts expect AI services demand to pick up from mid-2026, with the Nifty IT index rebounding 7.5% recently.

Why It Matters: Infosys ADR's sharp rise and NYSE halt were due to a short squeeze amid positive IT sentiment.