Dhaka, May 7 -- Dhaka stocks tumbled at the opening on Tuesday, with the benchmark index dropping sharply by 1.58 per cent as investors reacted to rising geopolitical tensions following India's airstrikes in Pakistan.

DSEX, the key index of the Dhaka Stock Exchange (DSE), fell by 78.35 points to 4,873 within the first hour of trading. The decline was recorded around 11:28 am, when this report was filed.

"Stock markets are very sensitive. While it's unlikely that the India-Pakistan conflict will have a direct financial impact on Bangladesh, such tensions typically spark fear among investors," said Mohammad A Hafiz, former president of the Bangladesh Merchant Bankers Association (BMBA).

The DS30 index, which tracks blue-chip companies, l...