Dhaka stocks witnessed a sharp fall in the first half of today's trading session, driven by heavy sell-offs amid uncertainty stemming from rising tensions between India and Pakistan.

The DSEX, the benchmark index of the Dhaka Stock Exchange, shed 2.47 percent, or 122.61 points, to stand at 4,829.11 as of 1:16 pm.

"Market sentiment is negative. There was significant sell pressure amid the India-Pakistan conflict due to the associated uncertainty over the Bangladesh economy," said a market analyst, seeking anonymity.

He noted that overall indices were already at low levels, and the latest plunge has deepened the losses for many investors. 

"It is a retail investor-driven market, and we are seeing overreactions," he added.

The Shariah-based DSES index dropped 3.17 percent to 1,055.34, while the DS30, which comprises blue-chip stocks, fell 1.88 percent to 1,799.26.

India struck nine sites in Pakistan on Wednesday, claiming they were "terrorist infrastructure," two weeks after an attack in Indian-administered Kashmir killed 26 people, a strike New Delhi blamed on Islamabad, reports Reuters.