Indian share markets continue to trade near the dotted line during the noon session. Energy stocks and metal stocks witnessed majority of the buying momentum. Software stocks and FMCG stocks traded in red.

The BSE Sensex is trading higher by 13 points and the NSE Nifty is trading higher by 16 points. Meanwhile, the BSE Mid Cap index is up by 0.8% & the BSE Small Cap index is up by 0.9%. The rupee is trading at 64.82 to the US$.

The growth in India's manufacturing sector fell to a four-month low in June amidst a slowdown in new order and production ahead of the implementation of the goods & services tax (GST). The Nikkei India Manufacturing Purchasing Managers' Index (PMI) slipped to 50.9 in June from 51.6 in May. A reading above 50 implies an expansion, while one below 50 denotes a contraction.

Manufacturing PMI at Four-Month Low

PMI data highlighted a slowdown in growth across India's manufacturing sector during June. As per the survey report, challenging economic conditions, water shortages and the implementation of the GST reportedly hampered growth.

NTPC share price is trading up by 0.5% on the BSE after it was reported that the company is planning to build three new plants with a combined capacity of more than 5 gigawatts (GW), nearly double the capacity of those currently being phased out.

Moreover, the company is planning to invest US$10 billion in new coal-fired power stations over the next five years despite the electricity regulator's assessment that thermal plants now under construction will be able to meet demand until 2027.

Power stocks are presently trading on a firm note with PTC India Ltd share price and JSW Energy share price leading the gains.

Meanwhile, liquor stocks trade higher after the Supreme Court observed that there may be nothing wrong in de-notifying particular stretches of highways running inside city limits as city roads and such de-classification does not violate its order that national and State highways across the country should be liquor-free zones.

United Spirit share price is up 2.6%, United Breweries share price is up 1.8% and Globus spirits is up 2.1%.

In news from economic sector, driven by demand in major markets like the US, the current financial year has begun well for the country's gems and jewellery sector, as exports increased by 11.13% to US$6.78 billion during first two months (April-May) of the financial year 2017, compared to US$6.1 billion exports from the sector in April-May period of the last financial year.

As per the data from Gems & Jewelry Export Promotion Council (GJEPC), the rise in demand for silver jewelry and gold medallions & coins among other items led to rise in the shipments. In the reported period, silver jewelry exports surged by 125% to US$1.51 billion from $0.67 billion, while gold medallions & coins exports grew by 49.95 per cent to $1 billion from $0.67 billion.

Besides, the exports of rough diamonds went up by 15.31% to US$0.25 billion. Similarly, shipments of cut & polished diamonds and colored gem stones registered a growth of 1.09% and 1.47% respectively. However, the gold jewellery exports declined by 35.59% to US$0.54 billion during April-May 2017, while imports of rough diamonds rose by about 6% to $3.60 billion in April-May 2017.