BENGALURU, Aug 20 Reuters Indian shares tracked Asian peers higher on Tuesday, led by information technology stocks, on hopes the U.S. Federal Reserve will start cutting rates from September.

The NSE Nifty 50 index was up 0.53 at 24,702.65 as of 1010 a.m. IST, and the SP BSE Sensex rose 0.51 to 80,839.08.

Ten of the 13 major sectors logged gains. IT companies, which earn a significant share of their revenue from the U.S., rose 1.2 and were the top sectoral gainers.

Expectation of a sharp U.S. rate cut in September and data showing that U.S. economy will most likely avoid a recession are boosting interest in IT stocks, two analysts said.

Fed Chair Jerome Powell39;s address on Wednesday could boost IT stocks further, they said.

Other Asian markets also rose, with the MSCI exJapan gaining 0.25.

India39;s broader, more domestically focussed small and midcaps rose about 0.2 each.

While the benchmarks have seen some time correction in August, the medium to long term outlook for Indian equities remains positive, said Sonam Srivastava, founder and fund manager at Wright Research.

The current phase provides opportunity for investors to rebalance portfolios and identify potential entry points, Srivastava said.

Private lender IndusInd Bank gained about 2 after central bank approval to set up a whollyowned asset management business. The stock was the top Nifty 50 gainer.

IndusInd Bank was also the top gainer in the bank index and financials, which rose about 0.75 each….