Before Market Opens: from FII buying to oil prices; 9 things to know at 9 am on August 22, 2022

The US stocks fell and the dollar rose on Friday, even as Treasury yields gained, with traders anxious about inflation and what the Federal Reserve will do to combat it. The Dow Jones Industrial Average fell 0.86 percent, to 33,706.15, the S&P 500 lost 1.29 percent, to 4,228.37, and the Nasdaq Composite dropped about 2 percent, to 12,705.22.

Asian shares got off to a rocky start on Monday while the dollar remained in demand amid concerns most major central banks are committed to raising interest rates no matter the risks to growth. South Korea's KOSPI shed 1.1 percent while Japan's Nikkei fell 1 percent, though it has drawn support from a recent sharp reversal in the yen.

At 8:20 am, the SGX Nifty was trading 58 points or 0.33 percent lower at 17,685, indicating a weak opening for the Indian markets.

Indian indices ended with significant cuts on August 19 amid weak global cues as the risk appetite of investors was dealt a blow by the US Fed officials who said more rate hikes are on the way. The 30-share pack closed 652 points, or 1.08% lower at 59,646.15. Nifty closed the day at 17,758.45, down 198 points or 1.10%.

Oil prices fell sharply on Monday on reports suggesting that Iran and Western countries were close to striking a deal that would lift sanctions on crude supply from the West Asian nation. West Texas Intermediate futures, the U.S. crude benchmark, sank over 1% to $89.39 a barrel, while London-traded Brent oil futures fell 0.5% to $95.59 a barrel by 20:01 ET (0002 GMT).

The US Federal Reserve will raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a Reuters poll, who said the risks were skewed towards a higher peak. Still around a four-decade high, inflation eased last month, driving Fed funds futures to narrowly switch their pricing to a 50 basis point hike in September after 75 basis point moves in June and July.

Foreign institutional investors (FIIs) net bought shares worth ₹1,110.90 crore, whereas domestic institutional investors (DIIs) net sold shares worth ₹1,633.21 crore on August 19, as per provisional data available on the NSE.

The rupee fell 10 paise to close at ₹79.78 in the previous session as the US dollar climbed to a one-month high. Analysts think that the domestic currency may trade in a range between 80.10 and 79.20, where the 80.10 mark.

Gold prices fell for a sixth straight session on Monday to hit their lowest in more than three weeks, weighed down by a robust dollar and expectations of further interest rate hikes from the US Federal Reserve to tame surging inflation, reported Reuters.