Quick take: Why is market cool to the US Budget deal?

Emerging markets, India included, have been largely immune to the political wrangling in the US over the Budget. The markets did not react much when the US government shutdown two weeks ago, and so now see no reason to be excited about the US Congress having reached a settlement.

Also Read: House passes budget deal; Obama to sign 'immediately'

The bipartisan agreement between the House of representatives and the Senate will fund the federal government through January 15 and raise the debt ceiling through February 7.
And it is not just emerging markets that have chosen to ignore the political drama in the US. Equity benchmarks in the US, and those in the top three European markets—Germany, UK and France—are up 1.5-3.0 percent so far this month.
The peripheral European economies have done even better, gaining 6-11 percent.
It is almost as though global markets are rejoicing at the damage the tussle between US lawmakers could cause to that economy.
The reason for this cheer could be driven by a short term outlook. Slower the recovery in the US economy, longer will the Fed take to wind down its monetary stimulus. And that means party in global markets could go on for a while, despite the gloomy outlook on global growth.
 Here’s a quick look at now major markets have fared so far in October:
                                                            Oct 2013 Performance
US markets have gained between                 1.5% to 2.2%
Europe Mkts (CAC, DAX, FTSE)               1.7% to 3% Peripheral Europe Has Run between       6-11%        
Athex Composite                                         10.9%
FTSE MIB(Italy)                                          10.5%
Portugal PSI 20                                            6.4% Emerging Markets:
Nifty 50                                                       +6.1%Brazil                                                           +6.9%Russia                                                          +5.6%Shanghai                                                       +4.5% Indian Indices:
CNX Realty                                                 +14.7%
CNX IT                                                       +10.4%
CNX AUTO                                                +8.11%
Bank Nifty                                                    +7.2%