The main stock indices BSE Sensex and NSE Nifty on Wednesday hit two-year highs after a report showed that domestic manufacturing rose in December, but analysts warned that the rally may be short-lived if investors choose to book profits. The 30-share Sensex gained 133.43 points or 0.68% to close at 19,714 points, while the broader Nifty breached the psychological mark of 6,000 points before closing at 5,993.25 points, a rise of 42.4 points or 0.71%.

Some analysts said the rally may not be sustainable.

Vijay Kedia, director, Kedia Securities said: “Nifty crossed 6,000 points for the first time in two years, but may not increase further the valuations are not cheap at this point.”

However, others were more optimistic.

“By closing near the psychological level of 6,000, the Nifty has decisively breached the pivotal level of 5,965 which was earlier an important headwind,” said Shubham Agarwal, senior technical equities analyst, Motilal Oswal Securities. “Downside supports should now emerge at 5,945 and 5,900, and declines could be temporary.”

The Sensex touched its all-time high of 21,078 points on January 8, 2008, and Nifty on November 4, 2010 at 6,282.