CJP protest in Delhi Jantar Mantar: Why India can't afford this crisis to last long amid US-Iran war? Explained

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CJP protest in Delhi's Jantar Mantar: The Cockroach Janta Party's aka CJP protest has entered a critical phase, with political tensions escalating after leaders of the principal opposition party staged a sit-in outside Prime Minister Narendra Modi's residence over the NEET-UG 2026 controversy and police action against student protesters. The demonstration ended with the detention of Rahul Gandhi, Priyanka Gandhi Vadra and several Opposition Party leaders, who were later released. Protesters are demanding the resignation of Union Education Minister Dharmendra Pradhan over the NEET-UG controversy.
Even though CJP protest at Jantar Mantar, New Delhi is in the nascent phase, but the entry of the opposition leaders has spurred the debate, whether it would be able to repeat the outcome of previous big protests like Anna Hazare movement, or the JP Movement, which unsettled the incumbent central government and paved the way for the principal opposition party to take power corridors. Much would depend upon the life of this protest and how the Modi Government handles this protest, because CJP protest in Delhi has injected fresh blood into the opposition party after the BJP's thumping victory in the West Bengal Assembly Elections. However, market and economic experts have their own views.
According to market and economic experts, the central government can't afford to let this CJP protest drag on, as it would put FIIs in a dilemma and negatively impact the Indian economy and stock market. They said that global markets, including Dalal Street, are already under pressure due to the US-Iran war, which has been ongoing for about five months, and that any local insurgency that takes a long time to settle may negatively impact the national economy and markets.
On how CJP protests in Delhi may have an indirect impact on the national economy and Dalal Street, Ponmudi R, Founder & CEO, Enrich Money, said that financial markets can absorb political events, but they are far less comfortable with prolonged uncertainty. India has built its global investment reputation on policy continuity, institutional strength, macroeconomic stability, and predictable governance. These factors have been instrumental in attracting sustained Foreign Institutional Investor (FII) inflows over the past decade.
“If the CJP protest remains limited and is resolved through institutional and constitutional processes, the market impact is likely to remain temporary. However, if the issue prolongs and starts raising broader questions around governance stability, institutional functioning, or policy continuity, global investors could become more cautious,” Ponmudi added.
The Enrich Money CEO said that FIIs generally do not exit a market because of a single protest, but prolonged uncertainty may prompt them to postpone fresh allocations, reduce risk exposure, or wait for greater clarity before deploying additional capital.
On why the central government can't afford for the CJP protest to drag on, Abhinav Tiwari, Research Analyst at Bonanza, said, “A prolonged disruption involving strikes, transport blockades or policy paralysis could eventually affect economic activity and investor confidence. But at present, the protest appears to be more of a social and governance concern than an FII or macroeconomic risk.”
The Bonanza expert maintained that the CJP protest in Delhi has yet to have an impact on the Indian economy and markets, as it is in its nascent phase, and the market believes in a quick resolution to this crisis. He said that recent weakness in Indian markets and the rupee has been driven more by global factors such as crude oil prices, geopolitical tensions, US interest-rate expectations, dollar movements and foreign fund allocation towards other emerging markets.
“Such caution in capital flows could increase market volatility, put pressure on the rupee if foreign inflows moderate, and raise the cost of imports, particularly crude oil, thereby adding to inflationary pressures. Sustained capital outflows or weaker inflows could also affect the current account and overall investor confidence, especially at a time when India is competing with other emerging markets for global capital,” Ponmudi R of Enrich Money said.
The Enrich Money expert believes international investors closely monitor any developments that could potentially affect long-term policy predictability and governance.
Pointing towards the contradictory movement of Dalal Street in comparison to the Asian markets, Ponmudi R of Enrich Money said, “The fact that major Asian markets are trading in positive territory while Indian equities are under pressure suggests that investors are differentiating between regional optimism and India-specific risks. At this stage, it would be premature to conclude that the CJP protest alone is driving market weakness.”
Rather, it is the combination of higher crude oil prices, escalating geopolitical tensions, Trump-led tariff concerns and earnings-related caution that is influencing sentiment.
Pointing towards the US-Iran war, Anuj Gupta, a SEBI-registered market expert, said, “The Indian economy is already under the US-Iran war and Trump's tariff pressure. However, these are global triggers, and the Indian market has largely discounted them. Now, FIIs are moving towards Indian markets, having turned net buyers in July. In such a scenario, any local trigger, like a CJP protest, may have a negative impact on the foreign investors as they look at the four variables: stability of the national currency, policy continuity, fiscal path and earnings outcome trajectory.”
“CJP putting FPIs in a dilemma would impact the national currency, which would trickle down towards the fiscal path and earnings trajectory,” said Gupta.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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