RBI booster for liquidity...

Though auctions have helped ease the deficit to some extent, experts say the relief from the cash squeeze is likely to be temporary as fund outflows, rupee volatility and tax payments may drain liquidity from the system.

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"This decline in the liquidity deficit could be temporary. FII outflows are likely to persist due to concerns over high valuation of Indian stocks. These outflows will put pressure on the rupee, potentially prompting the RBI to intervene, which would further drain liquidity from the system," said Madhavankutty G, chief economist at Canara Bank. "A