March 10 (Reuters) - Indian shares rose on Tuesday, rebounding from a sharp fall in the previous session and tracking Asian peers after U.S. President Donald Trump said the Middle East war could be "over soon", pulling down crude prices and easing fears of prolonged supply disruption.

The Nifty 50 rose 0.4% at 24,132.10 and the BSE Sensex added 0.4% to 77,912.50 as of 10:03 a.m. IST.

They rose 1% in early trade before paring some gains.

Fourteen of the 16 major sectors logged gains at the open. The broader smallcaps and midcaps climbed nearly 1% each.

Top lenders and index heavyweights HDFC Bank and ICICI Bank climbed 1.4% and 1%, respectively, after falling 3% in the prior session.

"We are seeing a relief rally today after Trump's hint of the Middle East war ending which is easing worries of oil supply," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial services.

"The recovery today is in line with the global relief rally after Indian benchmarks have fallen nearly 5% since the start of the war. Investors right now are cautiously optimistic," Khemka said.

The benchmarks posted their sharpest fall in a month on Monday, while the volatility index surged to a 21-month high after crude surged past $100 a barrel amid the expanding U.S.-Israeli war with Iran, raising worries of severe global supply disruptions.

On Tuesday, Brent futures were trading down 4.8% at $94.21 a barrel.

The drop in oil prices also drove paint stocks and airline stocks higher as crude is a major raw material for both.

Budget carrier IndiGo gained 3.2%, while Asian Paints rose 2.5%. They fell 3.8% and 2.6% on Monday.

Other Asian stocks climbed on the day, while U.S. equity futures were muted. [MKTS/GLOB]

Among individual stocks, Dixon Technologies gained 4.3% on getting government's approval for a joint venture with a Chinese firm.

Minda Corp climbed 3% on entering a joint venture agreement with UK-based Turntide Drives.

(Reporting by Kashish Tandon in Bengaluru; Editing by Sumana Nandy, Mrigank Dhaniwala and Nivedita Bhattacharjee)

By Kashish Tandon