The Sensex has broken an all-time high yet again, rallying 487 points in intraday trade to touch 21,483.74. The rupee too made significant gains, and is trading close to 60's level against the US dollar. The currency rose to as high as 60.83 against the dollar in early trade.The optimism on the markets is largely due to the outcome of the assembly elections, which saw the BJP win 4-0.A BJP victory in the coming general elections is perceived a big positive for the Indian economy as well as the markets by several brokerages and experts, assuming that it would crack the policy cunctation and kickstart an era of quick growth; even as other analysts feel that any political party at the Centre would do the same.But elation is there for sure, and several experts see the Nifty crossing 7,000 levels very soon."It is highly likely that the Nifty hits 7,000. I will not be surprised if you see it in December itself," says Sandeep Tandon, MD & CEO, Quant Broking."If Nifty closes above 6,357 anytime in the near future then within the next 45 trading sessions the index may rally upto 7,200-7,300 levels. We are in a bull run since August and hopes of a stable government will only strengthen the upmove," says A K Prabhakar, Independent Advisor.Nifty at 7,200 levels is a 15 per cent rise. If we calculate the same for the Sensex, the figure is around 24,000.The current all-time record closing high for the Sensex is 21,239.36; seen on November 3, 2013.As far as the overall economy is concerned, experts say any change at the Centre would be a welcome. "The markets are very-very sceptical of what has come to be identified as Congress policies and UPA policies; and any change can only be better; and therefore the markets are reacting favourably," says Bibek Debroy, Professor, Centre for Policy Research.CLSA is of the view that India may see a BJP-led government at the Centre post 2014 elections. "We conclude that the prospects of a BJP-led stable government in 2014 elections are rising and the final outcome, to a large extent, would depend on whether BJP can replicate success in the state of UP, Bihar and Maharashtra," the brokerage said in a note today.Nomura sees Sensex doing not exceptionally well. "We think that chasing the rally is not prudent, as it remains to be seen how the incumbent party will react to its poor showing in the state elections. We maintain our end-March 2014 Sensex target of 22,000," Nomura said in a note today.Kotak Securities says it anticipates the reforms process to continue post 2014 elections no matter which party comes to power."We expect the process of economic reforms to continue, assuming a stable BJP-led National Democratic Alliance (NDA) or an INC-led United Progressive Alliance (UPA) government after the 2014 national elections," says Kotak Securities.A strong positive for market sentiments, says Religare Securities. "It is the stance for a change that’s been rewarded today in the BJP’s unprecedented performance. Given the positioning as a barometer to 2014 general elections, markets sentiments would be strongly positive indeed," it said in a note.Bank of America Merrill Lynch says that markets tend to do well ahead of polls. So, in a way, it is discounting the current rally on D-Street. "Markets tend to do well ahead of elections. In five of the last six elections, investors buying six months before elections and selling on the day before results would have seen positive returns. The average return has been 15%," it said in a report today.Going by what brokerages and experts are saying, it does not look a bad picture for India going into 2014. The only negative now could be on QE tapering.Just a day back, America again signalled that the QE tapering could happen in December itself. Considering that the rally the Sensex witnessed recently is largely attributed to the liquidity provided by this US stimulus programme, analysts fear that a reduction in the same would have a significant impact on emerging markets, especially India, although they are divided on how much the impact would be.The Sensex, which is the benchmark index for India's stock market, has had a near 1,000-point rally since the abatement of tapering fears."As far as the markets are concerned, I would not be surprised if you got a taper, quantitative easing in the USA. The economy definitely seems to be on the rise; employment figures are getting better and you might find that that creates far more turmoil, that creates a far more bigger problem for the stock markets than anything that we are seeing on the political scene," says Swamimathan Aiyar, Consulting Editor, ET.Why America is likely to go for a tapering of the QE programme this month itself is due to the recent economic data. The US economy grew at 3.6 per cent in the third quarter, which is exceptionally better than what was expected.Vijai Mantri, MD & CEO, Pramerica MF, points out yet another reason: "The data which we are watching very closely is what's happening to US treasury yield. If they continue to rise, there is a possibility that the tapering will start perhaps sooner than the market would expect. If that happens, the market may take some hit of maybe 5% or 10% and we would not see market tanking from these levels."Another good set of numbers from the US were from the jobs front. Unemployment in the US fell to its lowest level in five years at 7 per cent for the month of November. 203,000 hirings took place in the month.The good news however about the US GDP data as far as far as tapering concerns go is that the numbers are built up largely on account of inventory pile-up, and hence do not reflect the real state of economy. This is one possible reason why the US may not go for tapering right away, and the market may continue to enjoy the support till early next year at the least.HSBC's view on Fed tapering: "Despite the last couple of months of relative calm, India has not completely shaken its vulnerabilities to Fed tapering. It will, therefore, be important to further guard against spillovers by sticking to monetary and fiscal policy tightening, and stepping up implementation of structural reforms. This is not an easy task at this juncture, given the soft economy and upcoming elections."