The benchmark Sensex rose by 158 points to close at a five-week high after strong gains in market leader Reliance Industries counter and positive cues from global markets.

The country's largest private sector company Reliance Industries led the rally as the scrip gained 3.31 per cent after it had said last week that it had submitted a bid to acquire the world's third-largest petrochemical company LyondellBasell.

The Bombay Stock Exchange barometer settled at 17,180.18 points, a rise of 158.33 points over previous close. The 30-share index had risen by 236 points in the last session.

Brokers said investors remained bullish and rolled over positions to next derivatives series ahead of the expiry of November contract on Thursday, supporting the uptrend.

European markets gained up to 1.70 per cent in early trade on signs about the economic recovery gathered pace.

Asian markets were broadly higher with Hong Kong's Hang Seng index closing up by 1.41 per cent and the Shanghai Composite Index by 0.92 per cent.

Tata Steel, which enjoys more than 2 per cent weightage in the Sensex formation, also spurted by 3.92 per cent after metal prices surged further on the London Metal Exchange over the weekend.