The Reserve Bank of India (RBI) has announced fresh open market operations (OMO) to inject Rs 80,000 crore into the banking system through government securities purchases in April. The move aims to address seasonal liquidity constraints and support financial markets amid evolving macroeconomic conditions.

According to the RBI’s release on Tuesday, the purchase auctions will be conducted in four tranches of Rs 20,000 crore each on April 3, April 8, April 22, and April 29. This comes after the central bank infused Rs 1 lakh crore in March through two OMO purchases of Rs 50,000 crore each. Additionally, the RBI conducted a $10 billion dollar-rupee buy/sell swap auction for a 36-month period to further stabilize liquidity.

The latest announcement takes the total OMO purchases since January to Rs 3.30 lakh crore. Market experts believe this is a significant relief for banks that faced a liquidity crunch in the February-March period.

Market expert Anil Singhvi views the RBI’s OMO move as a strong positive for banks and stock markets. “RBI’s consistent liquidity injections since January have been a game-changer. Typically, liquidity dries up at the end of the financial year, but this Rs 80,000 crore infusion will ease pressure on banks,” Singhvi said.

He emphasized that an increase in liquidity benefits rate-sensitive sectors like banking, NBFCs, and real estate. “Lower bond yields and improved liquidity conditions mean that banks will have more funds to lend, boosting credit growth and supporting economic activity,” he added.

With RBI’s proactive liquidity management, analysts expect financial stocks to gain momentum. Banks, especially PSU lenders, will likely benefit from improved liquidity and reduced borrowing costs. A softer bond yield environment may also support equity markets by making debt instruments less attractive compared to stocks.

FY25 ended with a banking system liquidity surplus of Rs 894 billion, compared to a deficit of Rs 2.4 trillion last week. This shift was driven by RBI’s liquidity measures, government spending, and foreign portfolio investor (FPI) inflows.

With continued OMO purchases, experts believe the markets may remain buoyant, particularly in financial and rate-sensitive sectors. However, traders will closely monitor any signals from RBI regarding future liquidity adjustments.