In addition to this, the fact that the market had earlier retracted had brought down scrip prices to attractive levels. And I had hypothesised that the combined effect of the two would result in punters picking stocks at lower prices, a kind of bottom fishing. Accentuated FII buying this week has now validated this hypothesis. The question now is where do we go from here? The market has continued to retain the bullish fervour on a wide front of scrips even on Friday.

Despite that, investors can ill-afford to numb their keenness and grow complacent about the political factor that impacts the market trend. If investors are bold to take positions now, their confidence might have well come from an underpinning of the ongoing political situation.

The Election Commission is yet toset a date for the poll. The chances of an early poll cannot be written off as yet, especially with the BJP strongly canvassing for it. No one knows the logical road map that is working inside the mind of the Election Commission. What everyone can see, however, is that the commission appears to be dragging in issues that are not central to the current poll. Updating of electoral rolls, exploring combining the polls with the assembly elections, all detract it from the need to get through the poll as early as possible. The commission seems to be blissfully unaware that a prolonged vacuum in the Lok Sabha will do irreversible damage to economic growth.

One needs only to remind oneself of the almost paranoid care with which Allan Greenspan handles the levers of the American economy, despite the fact that the economic engine there is running full steam. The care is justified because economic progress is a spiralling process, and one careless move can reverse the motion downwards.

It is high time the EC tookinto its consideration this angle. The apprehension in the minds of the investing community, who support national growth through their financial commitment in the stock markets, is that the EC is unaware of the economic implications of a delayed poll. It seems to believe that the electoral process is an end in itself and is to be done to perfection, and leisurely as well.

As far as the investor is concerned, the longer the delay, the more scared the investor will be take a stake in the market. If the market has stayed buoyant this week, it could well be on hopes that the EC would decide on an early poll date. The opposition parties have indicated to the EC that they would prefer the polls to be held in September. Obviously, they would prefer the cooling off period to blunt any edge that the BJP may have in an early poll.

But investors may as well relax. For further probing reveals that even a delayed poll may do no harm to the market undertone. Right now, the BJP is planning to counter the oppositionstrategy to decide a later date. Even though the BJP is a caretaker government in the interim period, it might proceed with vengeance to take full advantage of any poll delay.

Constitutional experts have already pointed out that their need be no restraints on a caretaker government. And the BJP can well reinforce its image to the chagrin of the Congress. The BJP is in a position to turn the tables on its opposition and emerge winners in either of the poll dates.

The Congress, on the other hand, has laid its cards on the table. It wants to rule by itself and not by any coalition with other parties. In contrast, the BJP is moving towards formulating a common election plank with its allies. So at the moment, the BJP appears to be having an edge.

In any case, the decision of the EC will be known next week. The market will definitely react to the dates. Should the elections be held in July, the Sensex is likely to gather momentum on its journey northwards. Its target will be 3,665 points.

On the otherhand, if the elections are targeted for September, market players will be faced with a difficult choice. Despite the apparent undercurrent favouring BJP, investors will have to continue monitoring political developments for the next four months. That kind of delay would certainly encourage repeated profit-booking as the index rises. That could happen at the 3,550-point level. But if developments induce confidence, it could advance further to 3,800 levels. But it is unlikely to break through this level, until the election results are known.

The delay could also do damage in another fashion. If the new government is installed only in September, the government's plan to mobilise another Rs 10,000 crore by selling PSU shares could become difficult to accomplish before March-end. That would add to the fiscal deficit, along with the negative results that will flow in. This, in turn, will restrain global investors from making an entry at higher levels. So, we all have to wait for the announcement from theEC.

But in the meanwhile, we have seen a very healthy sign of investors picking up chunks of undervalued scrips at bottom prices. This long-term investment will provide the cushion to the Sensex. Quite likely, there will be profit booking even by these investors at higher levels if the poll dates are set for September. This the investor has to take in his stride. In fact, he should shape his own strategy on similar lines.

But everytime the market dips, one must buy in repeatedly. The intelligent investor does not lament about negatives in the market. He focuses on how best to make his moolah, whatever be the circumstances.

Should the elections be posted for September, you should use the opportunity to repeatedly get in at the bottom and sell on the uprise. I have indicated the Sensex levels where such an action can take place. And even the short-term trader should keep in mind that there could be a class of investors who are getting into the market unmindful of the 15-20 per cent rise in prices thathave already taken place.

They could well be calculating their return, post elections. And they could be placing bets on BJP coming back to power. That is not too bad an assumption and may end up paying rich dividends. The moral of the analysis: There are more reasons to get into the market than to stay out of it.