The benchmark stock indices have opened yet another day with strong gains as investors are enthused by the prospect of a strong economic recovery.

Petrol and diesel prices have risen for the second day in a row as dynamic pricing resumes amid the strong rally in global crude oil prices.

Join us as we follow the top business news through the day.

Business economists expect worst slump since 1940s

The US economy is expected to bounce back, but the threat of a second wave of the coronavirus looms large.

PTI reports: "Business economists expect the United States to suffer its worst downturn this year in more than seven decades before growth resumes sometime next year.

Overhanging that forecast, though, is the risk that a second wave of the coronavirus could threaten the economy once again.

A survey released Monday by the National Association for Business Economics predicts that the gross domestic product — the total value of goods and services produced in the United States — will fall 5.9% for 2020 as a result of the recession triggered by the virus.

That would be the sharpest annual decline since GDP fell 11.6% in 1946, when the nation was demobilizing after World War II.

The NABE panel of 48 forecasters expects the 5% annual GDP drop that occurred in the January-March quarter to be followed by a record 33.5% annual plunge in the current April-June quarter. Yet the NABE panel foresees economic growth returning in the second half of the year, with strong annual expansions of 9.1% in the July-September quarter and 6.8% in the October-December quarter.

Even so, those gains would fall far short of making up for the dizzying economic contraction in the first half of this year.

In 2021, the panel forecasts GDP growth of 3.6%. But not until at least the second half of next year, according to an overwhelming majority of the forecasters, will the economy recover all its lost output from the recession. If a second eruption of viral infections were to occur, though, it would likely take much longer.

Eighty-seven percent of panelists view a second wave of COVID-19 as the greatest downside risk through 2020, added Eugenio Aleman, an economist for Wells Fargo and the chair of the outlook panel."

Gold dips as strong U.S. jobs data boosts risk sentiment

The global risk-on sentiment isn't doing any good to the yellow metal.

Reuters reports: "Gold prices slipped on Monday as an unexpected improvement in U.S. employment numbers boosted optimism about economic recovery, boosting risk appetite and denting the appeal of the safe-haven metal.

Spot gold was down 0.2% at $1,682.57 per ounce, as of 1241 GMT. U.S. gold futures were up 0.3% at $1,688.10. Last week, the bullion dropped 2.4%, its largest weekly fall since the week ended March 13 and a third consecutive weekly drop.

The U.S. economy unexpectedly added jobs in May after suffering record losses in the prior month, data on Friday showed, indicating that the downturn triggered by the coronavirus outbreak was probably over and boosted equity markets.

Focus is now on the U.S. central bank, which will hold a two-day policy meeting ending on Wednesday However, showing signs that the effects from the pandemic are still present, China's exports contracted in May, after a surprising gain in April, while imports fell more-than-expected to a four-year low."

‘India facing demand recession’

There are those who believe that with social distancing going to be the new norm, demand for ‘personal transport’ could see a surge. This might boost car sales, especially in the second half of FY21. We have to be patient and prudent till normalcy is restored, says T.T. Srinivasaraghavan, MD, Sundaram Finance Ltd. (SFL), in an interview. Edited excerpts

The impact of COVID-19 can be felt in all sectors, and financial services is no exception. How is SFL handling the situation?

The answer actually lies within your question. There are virtually no exceptions. Other than those who are manufacturing PPEs, sanitisers and other COVID-related stuff, everybody is more or less in the same boat. Business has come to a complete standstill and demand for trucks and cars has been virtually non-existent since the lockdown began. We just have to be patient and wait for better days.

Sensex rallies over 600 points in early trade; Nifty tops 10,300 level

The rally in stocks continues as traders believe the worst of the economic damage caused by the coronavirus pandemic may be behind us.

PTI reports: "Equity benchmark Sensex rallied over 600 points in early trade on Monday led by gains in index-heavyweights Reliance Industries, HDFC Bank and ICICI Bank amid positive cues from global markets and sustained foreign fund inflow.

After hitting a high of 34,927.80, the 30-share index was trading 608.59 points, or 1.77 per cent, higher at 34,895.83.

Similarly, NSE Nifty surged 184.60 points, or 1.82 per cent, to 10,326.75.

IndusInd Bank was the top gainer in the Sensex pack, soaring around 7 per cent, followed by Titan, Axis Bank, SBI, Bajaj Finance, ONGC, ICICI Bank, L&T, HDFC Bank and NTPC.

Shares of Reliance Industries (RIL) jumped around 2 per cent after the company on Sunday said it sold 1.16 per cent stake in its digital unit Jio Platforms to Abu Dhabi Investment Authority for Rs 5,683.50 crore.

This is the eighth deal by the oil-to-telecom conglomerate for its digital unit in less than seven weeks, completing the sale of the targeted 21 per cent equity in Jio Platforms ahead of a potential IPO.

On the other hand, Sun Pharma and Bharti Aurtel were the laggards.

In the previous session, the BSE barometer settled 306.54 points or 0.90 per cent higher at 34,287.24 and the broader Nifty rose 113.05 points or 1.13 per cent to 10,142.15.

On a net basis, foreign portfolio investors bought equities worth Rs 97.61 crore in the capital market on Friday, provisional exchange data showed."

Fuel prices rise as daily revision resumes after over 80 days

Consumers who didn't get to benefit from record low oil prices in previous months, will still have to pay more as oil prices rally.

IANS reports: "Oil marketing companies have resumed the dynamic pricing system for daily revision of fuel prices after over 80 days of halt.

In the national capital, the price of both petrol and diesel was increased by 60 paise to Rs 71.86 and Rs 69.99 per litre, respectively.

Prices of transportation fuel were last revised under the dynamic pricing policy on March 16 and there were few instances of price hike only when the respective state governments hiked VAT or cess.

In a bid to increase revenues during the nationwide lockdown, several state governments raised taxes imposed on transportation fuels.

With the revision, petrol prices in Mumbai, Kolkata and Chennai rose to Rs 78.91, Rs 73.89 and Rs 76.07 per litre, up from the previous close of Rs 78.32, Rs 73.30 and Rs 75.54 respectively.

Similarly, the diesel prices in Mumbai, Kolkata and Chennai increased to Mumbai Rs 68.79, Rs 66.17 and Rs 68.74 per litre respectively, up from Rs 68.21, Rs 65.62 and Rs 68.22.

Already, the gap between cost and sale price of petrol and diesel for OMCs has reached around Rs 4-5 per litre. If this has to be covered over a period of time, given there is no further increase in global prices, auto fuel prices may be increased by 40-50 paisa per day for a couple of weeks to cover the losses.

The increase in retail price under daily price revision would largely depend on prevailing oil prices and global oil market at the time to determine the retail price. Going by current trend, crude prices are way above price levels in April when even benchmark Brent crude had slipped below $20 a barrel.

However, lockdown has also curved demand for auto fuel. This could maintain some check on prices.

Raising retail prices became important for OMCs now as the recent steep excise duty hike without resultant increase in petrol and fiscal prices, had substantially brought down its marketing margins from record high level of Rs 12-18 per litre.

If it is unable to raise prices when the global crude prices are rising, it would start incurring losses that will get steeper."