Sensex gains 258 pts, closes at 7-week high of 16,739

Stocks rose, sending the benchmark Sensitive Index to a seven-week high, paced by Tata Steel on speculation that producers of the alloy may raise prices this month. Other steel stocks also rose. Tata Steel, the nation's largest maker of the alloy, rose to the highest in almost six weeks.

The BSE Sensex rose 258.13 points, or 1.6 per cent, to 16,739.33. It advanced for a fifth day, the longest rising streak this year, to the highest since February 29.