Domestic stock markets opened lower on Wednesday, on mixed cues from the 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 was down 0.22 per cent at 18,093, while the S&P BSE Sensex fell 0.20 per cent to 60,804 in early trade.

Most of the major sectoral indexes declined, with information technology stocks losing nearly one per cent.

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.

Asian markets were mixed, with the MSCI Asia ex-Japan index rising 0.11 per cent, 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.

Published on December 28, 2022