Stock Market - Respect

A lot has been said and written about the anomalies of the stock market, its irrational exuberance driven by sentiment and liquidity. The inefficiencies are always highlighted and talked and written about, especially during a bear market when things are collapsing. The fact remains, that a market consists of various participants. While the speculators do create noise, the sane minds respect earnings.

Last week, the Supreme court declared its verdict on the Reliance gas controversy. It ruled in favour of Reliance Industry being able to sell the gas at government prescribed rate. 
The stock market reacted in an expected manner. Reliance Industry soared, RNRL and Reliance Power tanked. What is amazing is that the market capitalization lost and gained was almost equal.

This is the beauty of the stock market. It computed the value derived by one company and value lost to the other set of companies in a matter of hours. This is no coincidence, its the sheer power of rationality of the markets.
Its instances like these which makes you say, Respect...