As long as shutdown continues, impact on growth to be higher: Tirthankar Patnaik, Religare Capital Markets

In a chat with ET Now, Tirthankar Patnaik of Religare Capital Markets, shares his views on the current outlook of the global market. Excerpts:

ET Now: There are problems in Europe, China and US, but global equities are still holding on. What explains the underlying strength?

Tirthankar Patnaik: As long as the shutdown continues and there is a tangible loss to the US economy, markets will factor in that aspect. The numbers are anywhere between $300 million to $400 million a day. From a GDP perspective, they might dent the overall growth number for 2013.

The longer the shutdown continues, the impact on growth would be higher. Therefore the probability of a taper would also concurrently come down. We believe that would essentially translate into higher liquidity coming into the global markets, essentially risk assets, and that is a big support factor for the markets over the last couple of days.