Bengaluru, Dec. 28 (BNA) — Indian stocks opened lower on Wednesday, amid mixed signals from US economic data on the path of growth, oil prices hovering around a three-week high, and reports of a rise in COVID-19 cases in China.
The Nifty 50 is down 0.22%, at 18093.50, as of 09:19 AM IST, and the S&P BSE Sensex is down 0.20%, at 60,804.40.
Most of the major sectoral indices declined, with IT stocks losing nearly 1%.
Stocks on Wall Street closed lower after data indicated that the trade deficit narrowed to $83.35 billion in November from $98.8 billion in October, Reuters reported.
The data indicated the strength of the economy, adding to concerns that the US Federal Reserve will continue on the path of raising interest rates.
A separate report showing a decline in home prices, pointing to a struggling housing market, also weighed on concerns.
US bond yields rose as investors tried to assess the Fed’s rate hike path in the wake of mixed data and China’s decision to scale back some COVID-related restrictions.
Asian markets were mixed, with the MSCI Asia ex-Japan index up 0.11%, amid reports that China’s hospitals were under severe pressure due to a spike in COVID-19 cases.
Adding to worries about local stocks was oil prices, which hovered around a three-week high on hopes of a recovery in demand in China.
High oil prices are hurting oil-importing countries such as India, as crude oil makes up the bulk of the country’s import bill.
EAE