Stewart chose the Hoosiers over a final four that also included Memphis, Arkansas and Kansas State.
"I just feel like it's a good fit overall, and the tradition at the school I just couldn't overlook," Stewart told ESPN on Tuesday. "I have known [assistant coach Kenya] Hunter for awhile now; he recruited me at Nebraska while I was in high school and when I left Pitt. I feel me and him have a good relationship and that I can trust him, and my father thought highly of him as well.
"Bloomington is four hours away from where my family is currently in Tennessee and four hours away from Ohio, where I'm originally from, so it made sense distance-wise. My mom has also been working on her PhD online at the university, so she was happy when they recruited me as well."
Stewart is the son of former Tennessee-Martin coach Anthony Stewart, who died suddenly just before the season began. When Stewart made the decision to enter the transfer portal in late November, he told ESPN he wasn't sure whether he was going to play this season.
Stewart finished his undergraduate degree in November, making him a graduate transfer -- and potentially eligible for the second semester at Indiana.
Asked Tuesday whether he would play second semester for Indiana, he responded: "Up in the air."
Sources previously indicated to ESPN that it had yet to be determined whether Stewart would play right away for the Hoosiers.
Stewart earned second-team All-Ohio Valley honors last season after averaging 19.2 points and 3.8 assists. He started his career at Pittsburgh, averaging 9.1 points and shooting 38.6% from 3-point range as a freshman, before transferring to play for his father at Tennessee-Martin.