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Indian shares rose in early trade on Thursday as the Federal Reserve maintained its rate-cut forecast for the year, with information technology stocks leading the pack.

The NSE Nifty 50 was up 0.55% at 23,033.75, while the BSE Sensex rose 0.55% to 75,865.57, as of 10:50 a.m. IST.

On Wednesday, the Fed held rates steady, as widely expected, and reaffirmed its forecast for two rate cuts in 2025.

"The Fed is still aligned with market expectations of two rate cuts in 2025, which is perceived as a positive by investors," said Ankita Pathak, fund manager - global equities and macro strategist at Ionic Asset by Angel One.

However, the central bank's ability to cut rates will largely depend on tariffs and their effects on U.S. inflation, she said.

Lower U.S. interest rates make emerging markets, such as India, more attractive to foreign investors by weakening the dollar and lowering Treasury yields.

FPIs have offloaded Indian shares worth $29 billion since October, on worries of higher-for-longer U.S. interest rates due to tariffs and on slowing domestic earnings.

IT companies, which get a substantial chunk of revenue from the U.S., jumped 2%, with HCL Technologies, Tata Consultancy Services, Wipro and Infosys gaining about 2% each.

Metal stocks, however, fell 0.4%, set to snap a three-day winning streak.

Smallcaps and midcaps traded flat.

Analysts do not expect runaway gains in the Indian market before reciprocal tariffs come into effect on April 2 and their impact becomes clear.

"India's ability to navigate this global uncertainty hinges on sustaining domestic growth momentum and prudent monetary maneuvering amidst external turbulence," said Arsh Mogre, economist, institutional equities, at PL Capital.

Among stocks, wire and cable firms fell between 4% and 15% after the Adani Group announced its expansion into the sector, less than a month after UltraTech Cement's entry, raising concerns about intensifying competition.

One 97 Communications dropped 5% on a smaller-than-expected incentive from the government for low-value UPI transactions.