Madhya Pradesh Lures Toyota, RBI's Liquidity Boost, and Market Rebound

Chief Minister Mohan Yadav of Madhya Pradesh pitches the state as an ideal site for Toyota. RBI plans to inject Rs 1.5 lakh crore liquidity via a USD/INR swap auction. Benchmark indices Sensex and Nifty recover amidst banking sector buying. Rupee depreciates; gold prices dip amid weak demand.

Madhya Pradesh is making a strong push to attract global carmaker Toyota to its shores. The state's Chief Minister, Mohan Yadav, touted the region's investor-friendly policies and skilled workforce as ideal conditions for the company. These overtures are intended to entice Toyota to build facilities and expand youth training initiatives.

Meanwhile, the Reserve Bank of India unveiled plans to significantly boost liquidity in the financial system. By conducting a USD/INR buy-sell swap auction worth USD 5 billion, the central bank aims to inject over Rs 1.5 lakh crore into the banking sector. This move is expected to spur investment and stabilize markets.

In the stock markets, a reversal in fortunes was observed as Sensex and Nifty rebounded from a two-day slump. The renewed buying interest was fueled by the RBI's liquidity plans, particularly in banking and rate-sensitive stocks. However, the rupee faced challenges, declining 26 paise to end at 86.57 against the dollar, while gold prices dropped due to diminished demand.

(With inputs from agencies.)