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Household debt is on a rising trend with the super prime borrowers borrowing to create assets and the subprime borrowers borrowing for consumption purposes. But dispelling concerns about a built up in bubble , the Reserve Bank of India said that the increase is driven by a growing number of borrowers rather than an increase in average indebtedness in its latest financial stability report released on Monday.At 42.9 percent of the country’s gross domestic product at current market prices in June 2024, India’s household debt is relatively low compared to other emerging market economies. “However, it has increased over the past three years. Even as household debt is on a rising trend, the increase is driven by a growing number of borrowers rather than an increase in average indebtedness” the central bank said.A disaggregated analysis of the nature of individuals’ borrowings shows that loans are primarily used for consumption (personal loans, credit cards, consumer durable loans and other personal loans), asset creation (mortgage loans and vehicle loans and two-wheeler loans) and for productive purposes (agriculture loans, business loans and education loans), according to the report.Borrower-type analysis revealed that subprime borrowers availed loans primarily for consumption purpose, whereas super-prime borrowers used debt for asset creation, especially housing.But the trend may not be worrisome because per capita debt of individual borrowers has increased sharply for super-prime borrowers in the recent period, while it has remained stable for other risk tiers. “ From a debt-servicing capacity perspective, the rise in per capita debt only among highly rated borrowers and use of debt for asset creation are credit positive and financial stability enhancing” the report said.The central bank’s assessment of the quality of Indian household debt assumes significance in the backdrop of a sharp rise in retail borrowings in the banking sector raising asset quality concerns if repayment is hit because of over borrowing and income loss. The Reserve Bank, it may be recalled had imposed higher risk weights on certain retail loans like credit card outstandings and unsecured loans to rein in such lendings by banks and NBFCs.

Nifty, on Monday, formed a reasonable negative candle on the daily chart with an upper shadow. Technically, this market action indicates an attempt for a downside breakout of the range movement. This is not a good sign and signals more weakness ahead.The crucial support of the 200-day EMA has been violated again at the 23,700 level amid choppy movement and the opening downside gap of 19th December remains unfilled after seven sessions of its formation. The unfilled opening down gap could be considered a bearish run-away gap, which is normally formed in the middle of a downtrend. Hence, more decline could be in store, said Nagaraj Shetti of HDFC Securities.The short-term trend of Nifty is down and the market is expected to slide down to 23,500-23,400 levels in the short term. Immediate resistance is at 23,800 levels, he added.According to the open interest (OI) data, the highest OI on the call side was observed at 24,000 and 23,800 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,600.What should traders do? Here’s what analysts said:Hardik Matalia, Choice BrokingOn the daily chart, the Nifty index formed a significant bearish candle with a long upper wick, signalling strong selling pressure at higher levels. The index ended the session below the 23,650 mark after experiencing considerable intraday volatility. On the downside, the 23,600 level serves as a critical support. A breach of this level could lead the index toward the 23,500–23,200 zone. Conversely, on the upside, 23,800 is a key resistance, with the next major barrier at 24,000. A sustained close above these levels is essential to negate the current bearish momentum. Given the heightened volatility, traders are advised to remain cautious, use strict stop-loss measures, and avoid holding long positions overnight to manage risks effectively.Rupak De, LKP SecuritiesThe Nifty remained volatile during the session, oscillating between 23,600 and 23,900. On the daily chart, the index has slipped below its recent consolidation. Additionally, it continues to trade below the 200-DMA, indicating weak sentiment. The overall outlook remains negative for the short term, with potential downside risks. On the lower end, support is seen at 23,400, while resistance is expected around 23,870 in the near term.Nandish Shah, HDFC SecuritiesThe broader range for the Nifty has been 23,500-24,000 for the last 5 trading sessions and either side breakout would decide the further trend. However, the positional trend remains down as the Nifty is currently placed below key moving averages.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

The initial public offering (IPO) of Fabtech Technologies Cleanrooms will open for subscription on Friday, January 3. The company aims to raise Rs 27.74 crores through the issue and its stock will get listed on the BSE SME platform.About Fabtech Technologies Cleanrooms IPOFabtech Technologies will issue 32.64 lakh equity shares. While the face value of an equity share is Rs 10, the company has put the price band at Rs 80-85 per share.Under the issue, a quota of 15,47,200 equity shares has been allocated for Qualified Institutional Buyer (QIBs) while for Non-Institutional Investors (NIIs), 4,65,600 equity shares have been allocated. Retail Individual Investors quota stands at 10,86,400 equity shares. As for the Market Maker segment, the company has set aside up to 1,64,800 equity sharesWhat is Fabtech Technologies Cleanrooms GMP?Shares of Fabtech Technologies were not commanding any premium (GMP) in the grey market. Proceeds from Fabtech Technologies IPOThe net proceeds from the IPO will be utilised to meet long-term working capital requirements, proposed acquisition of equity shares of Kelvin Air Conditioning & Ventilation Systems Private Limited and general corporate purposes. When is anchor bidding for Fabtech Technologies Cleanrooms IPO?The anchor bidding will open on January 02, 2025. The issue opening date will be January 03, 2025 and the issue will close on January 07, 2025.Lead Managers for Fabtech Technologies IPOThe Book Running Lead Manager (BRLM) to the issue is Vivro Financial Services Private Limited and the registrar to the issue is Maashitla Securities Private Limited.Mr. Aasif Ahsan Khan, Chairman & Non-Executive Director of Fabtech Technologies Cleanrooms Limited said, "Our IPO marks a transformative phase in the Company’s growth story. With over 28 years of engineering expertise as part of the Fabtech Group and a strong presence in the pharmaceutical, healthcare and biotech sectors, we are committed to delivering innovative cleanroom solutions. The funds raised through the IPO will strengthen our working capital, support strategic acquisitions like Kelvin Air Conditioning & Ventilation Systems and fuel the expansion of our product portfolio, including modular panels, doors and advanced HVAC systems. With facilities in Umbergaon and Murbad and a proven track record of engineering excellence, this IPO positions us to seize emerging market opportunities, enhance operational efficiency and solidify our leadership in the industry. We are keen to take this step toward delivering greater value to our customers and the cleanroom ecosystem."Mr. Tushar Ashar, Vice President of Vivro Financial Services Private Limited said, "The Company is entering an exciting phase in its growth journey. With a strong foothold in the cleanroom solutions industry, particularly within the pharmaceutical, healthcare and biotech sectors, Fabtech has shown remarkable growth potential. The cleanroom industry is witnessing significant expansion, driven by increasing demand for stringent quality standards and contamination control, particularly as global industries focus on health and safety protocols. This IPO will enable the Company to enhance its financial position, pursue key acquisitions and expand its range of products. We are confident that the Company’s continued emphasis on innovation, quality and meeting evolving industry needs will provide substantial long-term value for its customers and cement its leadership in the market."About Fabtech Technologies CleanroomsPart of the Fabtech Group, which has over 28 years in the engineering sector, Fabtech Technologies Cleanrooms Limited was established in 2015 and rebranded in 2024.Fabtech Technologies Cleanrooms provides modular panels and doors for cleanroom environments in the pharmaceutical, healthcare and biotech sectors. The company offers comprehensive solutions from design to validation, including engineering, manufacturing and installation of cleanroom components, such as wall panels, doors, HVAC systems and epoxy flooring.The Company owns 26% stake in Advantek Air Systems Private Limited and has invested in Kelvin Air Conditioning and Ventilation Systems Private Limited to enhance its HVAC capabilities.The company has facilities in Umbergaon, Gujarat and Murbad, Thane. Also Read: Citichem India IPO Day 2: Check key dates, GMP, price band, subscription and other detailsCompany financialsIn FY24, Fabtech Technologies reported revenue of Rs 97.39 crore while the Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at Rs 9.06 crore. The profit after tax (PAT) stood at Rs 5.78 crore.As of September 2024, the company had achieved a revenue of Rs 61.92 crore while the EBITDA of Rs 7.54 crore. PAT was reported at Rs 5.40 crore.Also Read: Year-ender 2024: Trent, Zomato among 33 biggest wealth creators this year. Where are the money-making opportunities in 2025?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)