Stocks have gotten off to a good start this week as investors bet on a sharp economic recovery.

The demand for the safe haven asset gold dropped amid the risk-on sentiment prevalent among investors.

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

Gold slips as risk appetite improves, virus surge caps losses

Safe haven demand dropped today as global stocks rallied on investor enthusiasm about growth.

Reuters reports: "Gold prices eased on Monday as risk sentiment improved ahead of U.S. services sector data, although losses were capped by worries over surging coronavirus cases in some U.S. states.

Spot gold was down 0.1% to $1,773.49 per ounce by 0306 GMT. U.S. gold futures fell 0.4% to $1,782.30. “We're seeing some big gains in Hong Kong and Chinese share markets,” and that sort of growth-positive movement is generally expected to weigh on gold, said Michael McCarthy, chief strategist at CMC Markets.

Asian shares scaled a four-month high on bets for super-cheap liquidity and fiscal stimulus to sustain the global economic recovery, with investors awaiting U.S. services sector activity data for June later in the day. Financial markets have regained lost ground as a raft of positive economic readings lifted sentiment, although a spike in COVID-19 cases renewed worries about a swift economic recovery.

However, the huge amount of stimulus and evidence in other markets signalling a shift in focus back towards infection rates could help gold “maintain its elevated status,” CMC's McCarthy said. Gold has gained nearly 17% so far this year, and was just $15 shy of a near eight-year peak scaled on July 1.

In the first four days of July alone, 15 U.S. states reported record increases in new cases of COVID-19, which has killed around 130,000 Americans.

“With increasing number of U.S. states imposing lockdowns again, it should result in the Federal Reserve's balance sheet continuing to grow and interest rates kept low, which would in turn provide underlying support for gold markets,” Phillip Futures said in a note.

Lower interest rates and widespread central bank stimulus tend to support bullion, which is considered a hedge against inflation and currency debasement."

Former RBI governor Patel pens book on dealing with NPA issue

Urjit Patel, whose stint as the head of the central bank was one of the most tumultuous in recent times that ended with the rare event of an RBI Governor resigning, will be releasing a book later this month, his publishers have said.

Titled ‘Overdraft: Saving the Indian Saver’, the book focuses on the non-performing assets (NPAs) issue that has afflicted Indian banking in recent years, its causes and Mr. Patel’s efforts as the RBI Governor in dealing with it.

“Urjit Patel invests his thirty years of macroeconomic experience in building strategies to protect our banks from unscrupulous racketeers, ultimately aimed at saving our savings...,” publisher HarperCollins India tweeted.

Mr. Patel’s book description says that sovereigns do not need to earn or save before spending money. They can either print or borrow.

Sensex rallies over 300 points in early trade, Nifty tops 10,700

The sentiment in stocks continues to remain bullish.

PTI reports: "Equity benchmark Sensex rallied over 300 points in early trade on Monday tracking massive buying momentum in Asian peers and foreign fund inflows.

After touching a high of 36,389.01, the 30-share index was trading 310.29 points, or 0.86 per cent, higher at 36,331.71, while the NSE Nifty rose 99.70 points, or 0.94 per cent, to 10,707.05.

IndusInd Bank was the top gainer in the Sensex pack, advancing around 4 per cent, followed by HDFC Bank, Bajaj Finance, Tech Mahindra, SBI, Axis Bank, ITC and Tech Mahindra.

On the other hand, Bajaj Auto, PowerGrid, Titan and HUL were among the laggards.

In the previous session, the BSE barometer settled 177.72 points, or 0.50 per cent, higher at 36,021.42, and the broader Nifty rose 55.65 points, or 0.53 per cent, to end at 10,607.35.

Foreign institutional investors turned net buyers in the capital market on Friday, purchasing equities worth Rs 857.29 crore, provisional exchange data showed.

According to traders, domestic indices rallied on positive sentiment led by hopes of a COVID-19 vaccine, improving macroeconomic conditions and massive buying-interest in global benchmarks despite surging coronavirus cases across the world.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul soared up to 4 per cent on hopes of more government stimulus to support economic recovery.

Meanwhile, international oil benchmark Brent crude futures rose 0.63 per cent to USD 43.07 per barrel."

Mutual Fund investment in equity markets rises to ₹39,500 crore during first half of year

Mutual funds net invested nearly ₹39,500 crore in the stock markets in the first six months of 2020, more than four-times the amount infused in the year-ago period, as volatility and correction in the broader markets provided a good investment opportunity for investors.

Further, consistent SIP (systematic investment plan) inflows into equity funds gave fund managers a healthy stream of capital to keep buying quality companies, experts said.

This comes in the backdrop of the coronavirus pandemic related disruptions, a sharp slowdown in economic activity across the globe and a steep sell-off in equities in March 2020.