(Updates for market close)

By Vivek Kumar M

Aug 25 (Reuters) - Indian shares kicked the week off on

a positive note as U.S. Federal Reserve Chair Jerome Powell

hinting at an interest rate cut buoyed prospects for risk assets

globally.

The Nifty 50 rose 0.39% to 24,967.75 points and the

BSE Sensex added 0.4% to 81,635.91.

Powell pointed to a possible September interest rate cut in

his Jackson Hole Symposium speech on Friday, saying that risks

to the job market were rising, even as he noted that inflation

remained a threat and that a decision wasn't set in stone.

Lower U.S. rates make financial assets in emerging markets,

such as India, more appealing to foreign investors.

MSCI's broadest index for Asia-Pacific stocks outside Japan

rose 1.4% on the day.

In India, ten of the 16 major sectors advanced, with

information technology stocks rising 2.4% to lead the

gainers. IT companies get a substantial chunk of their revenue

from the U.S.

The top four Nifty 50 percent gainers were all IT companies,

with India's two biggest software exporters, Tata Consultancy

Services and Infosys, jumping 2.8% and 3.1%,

respectively.

Metal stocks gained 0.7% as rate cut hopes

weighed on the dollar and aided metal prices.

Investors remained cautious as U.S. President Donald Trump's

additional 25% tariffs on Indian goods are set to take effect on

August 27, which will increase the total levies to up to 50%.

India's broader, more domestically-focused midcaps

and smallcaps erased early gains to

end little changed.

"The likelihood of a negotiated settlement is fading and the

final effective tariff of 50% cannot be ruled out," Emkay Global

Financial Services said.

Paper makers soared, with JK Paper and West Coast

Paper Mills jumping 17.4% and 13.8%, respectively,

after the government imposed a minimum import price on virgin

multi-layered paper board.

(Reporting by Vivek Kumar M; Editing by Sumana Nandy and

Mrigank Dhaniwala)