New Delhi, July 21 -- While it may be premature to conclude that the ongoing protests by the Cockroach Janata Party (CJP) and activist Sonam Wangchuk's hunger strike will affect market sentiment, investors are keeping a close watch as any escalation could have broader political implications.

The question of whether these developments could spook Dalal Street is still a distant one, but it does exist.

Protests and strikes- hallmarks of a vibrant democracy- rarely unsettle markets unless they materially increase the risk of political instability. At present, neither the CJP protests nor Sonam Wangchuk's hunger strike appears to pose such a risk.

On Monday, the "Sansad Chalo" march of the CJP turned into violent confrontations with the po...