Mumbai: The BSE benchmark Sensex tumbled 546 points down on Monday in sync with the global markets that reacted to S&P's downgrade of the US credit rating on Friday, but made some recovery by closing 315 points down to its 14-month low.

The 30-share index that opened low and soon tumbled over 500 points recovered after Finance Minister Pranab Mukherjee said the India was better prepared than many others to handle the crisis situation and its fundamentals continued to remain strong.

However, the comfort did not last long as heavy losses in IT stocks led by industry bellwether Infosys and largest IT services exporter TCS pushed the Bombay Stock Exchange key index to below the 17,000 level at 16,990.18, a level last seen on June 10, 2010.

Reliance Industries, the most heaviest on the Sensex dropped to its lowest level in more than two years by losing 1.40 per cent to Rs 780.60 and second heaviest Infosys fell by 4.73 per cent to Rs 2,468 a piece.

The Bombay Stock Exchange's 30-share index last fell below the 17,000 mark on Friday on fears of a weakening global economy after it emerged that US had grown at a lower than expected rate for the second quarter of 2011 while fears emerged over debt crisis spreading to Italy and Spain in Euro-zone.

Broad-based National Stock Exchange index Nifty today tumbled below 5,100 level, before ending with a loss of 92.75 points to 5,118.50.

Abroad, Asian stocks closed notably lower followed by a weak opening in Europe.