India’s debt market reflected improved sentiment in March, aided by strong liquidity support from the Reserve Bank of India (RBI), easing inflation, and a narrowing trade deficit. According to Puneet Pal, Head – Fixed Income, PGIM India Mutual Fund, the end of the financial year was marked by the RBI’s proactive liquidity measures. “The RBI continued with its Open Market Operations (OMO) purchases along with Forex (FX) swaps to increase liquidity in the banking system, infusing over Rs 5 lakh crore of durable liquidity in the Jan-March 2025 quarter,” Pal noted.