Bengaluru, Sept. 17 -- Aviation services stock dropped sharply and hit its 5 percent lower circuit on Wednesday after announcing a material development impacting its domestic airport lounge operations. Investor sentiment weakened as the move follows a series of contract terminations in recent weeks, heightening concerns about the company's business continuity in the domestic segment.

Dreamfolks Services Ltd, with a market capitalization of Rs. 697.84 crore, opened at Rs. 131 compared to its previous close of Rs. 137.85. The stock fell to its intraday low of Rs. 131, locking in the 5 percent lower circuit limit.

What's the News? The company informed exchanges that domestic airport lounge services provided to its clients have been discont...