RBI’s ₹60K Crore Cash Infusion Into PSU Banks: A Warning Sign for the 2025 Budget?

Just came across the news that the RBI has announced a massive ₹60,000 crore cash infusion into government banks. This is basically indirect liquidity support for DIIs (Domestic Institutional Investors), and it’s got me thinking – is this a preemptive move to stop the markets from tanking after the 2025 Union Budget? Historically, such moves signal that the government is preparing for something that might not sit well with the markets. My guess is the upcoming budget might have policies or announcements that could spook investors – maybe increased taxes, a reduction in sectoral incentives, or populist measures ahead of elections that hurt the economy. By pumping liquidity into PSU banks, the RBI seems to be ensuring that DIIs have enough dry powder to step in if there’s a market freefall post-budget. It feels like they’re trying to soften the blow in advance. What do you guys think? Are we heading into a rough patch for the market? Would love to hear your opinions and analysis on what this cash infusion could mean. Let’s discuss!