BENGALURU: Indian shares opened lower on Wednesday, on mixed cues from US economic data on growth trajectory, oil prices hovering around a three-week high, and reports of a surge in COVID-19 cases in China.

The Nifty 50 index was down 0.22% at 18,093.50, as of 09:19 a.m. IST, and the S&P BSE Sensex fell 0.20% to 60,804.40.

Most of the major sectoral indexes declined, with information technology stocks losing nearly 1%.

Wall Street equities closed lower after data indicated that trade deficit narrowed to $83.35 billion in November from $98.8 billion in October.

The data suggested strength in the economy, adding to concerns that the US Federal Reserve will continue on its rate-hike path.

A separate report that showed a fall in home prices, indicating struggles for the housing market, also weighed on concerns.

US bond yields rose as investors tried to assess the Fed’s rate-hike path following the mixed data and China’s decision to scale back some of its COVID-related restrictions.

Indian shares rise; metals lead on China reopening optimism

Asian markets were mixed, with the MSCI Asia ex-Japan index rising 0.11%, amid reports that China’s hospitals were under intense pressure due to a surge in COVID-19 cases.

Adding to the worries for domestic equities were oil prices, which hovered around a three-week high on hopes of demand recovery in China.

Higher oil prices hurt oil-importing countries like India, where crude constitutes the bulk of the country’s import bill.