The 30-stock index is 496.75 points away from its all- time peak of 21,483.74 hit on December 9, 2013.
"Stock markets are in an uptrend mode currently. Markets are in the process of witnessing pre-election rally. A clear mandate would be favourable for equities and it is likely that Sensex will touch 22,000 before elections," said Paras Bothra, Research Head, Ashika Stock Brokers.
The Bombay Stock Exchange (BSE) Sensex and the NSE Nifty hit all-time high of 21,483.74 and 6,415.25 points, respectively, on December 9, after the Bharatiya Janata Party's good show in recent assembly elections.
"Elections are very important event for the markets. If a stable government comes to power, markets are likely to scale new highs. Markets are usually buoyant before elections," said Augment Financial Services' Founder and CEO Gajendra Nagpal.
Market experts said that in an election year, equities usually go up in the run-up to elections, and if a clear mandate comes, the trend usually continues.
A government that will be focused on growth and containing fiscal deficit could fuel sharp rally across the markets, an expert said.
According to Kishor Ostwal, CMD, CNI Research: "Markets will be range-bound. It may go down if a third front emerges. However, if a clear mandate comes, stocks may see a sharp uptick."
The Sensex has surged 777.73 points so far this month.
Live: BSE Sensex