Indian equities rose in early trade on Wednesday, tracking gains across Asian markets as investors strengthened bets on a U.S. Federal Reserve rate cut later this month.

The Nifty 50 added 0.28% to 25,216.2, while the BSE Sensex rose 0.20% to 82,192.33 as of 9:52 a.m. IST. Fifteen of the 16 major sectors were trading higher, with broader mid-cap and small-cap indices gaining 0.7% and 0.3%, respectively.

On Tuesday, Fed Chair Jerome Powell noted that the U.S. labor market remains weak, though the economy appears more stable, and reiterated that the inflation outlook is largely unchanged following September’s 25-basis-point rate cut. Analysts say Powell’s remarks, combined with hints of a pause in the Fed’s balance sheet reduction, boosted bullish sentiment.

Asian markets advanced 1.3% on optimism around the expected Fed move, although renewed U.S.-China trade tensions kept a lid on risk appetite. Lower U.S. interest rates typically increase the attractiveness of emerging markets like India for foreign investors, as dollar and Treasury yields decline.

Information technology companies, which earn a significant portion of revenue from the U.S., led the gains. Persistent Systems climbed 6.7% after reporting higher revenue and profit for the September quarter. “IT earnings have started on a good note, with most companies reporting in-line or better-than-expected numbers, giving comfort to investors,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

Among individual stocks, ICICI Lombard General Insurance jumped 7% after posting strong quarterly profit, highlighting robust performance in the insurance sector.