Dear All, *Key Highlights:* 📌 *Indian banking system is experiencing a notable liquidity shortage, soaring to over ₹3 lakh crore this week due to GST payouts, auction outflows, and other global factors.* 📌Apart from conducting daily VRR auctions, RBI has initiated bond purchases under open market operations to infuse durable liquidity and signal that broad based measures to address the liquidity deficit may soon follow. 📌 *Union Budget FY2025-26, scheduled on February 1, 2025*, comes amidst moderated domestic growth, and global uncertainties. 📌*We expect the Government to prioritize increased capital expenditure to support growth while maintaining fiscal consolidation, as guided in past budgets, to ensure long-term economic stability.* Click below to read the full report. https://www.kotakmf.com/documents/Liquidity_Monitor_26_Jan_2025 MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Thanks & Regards, Team Kotak MF