December 19, 2007: Morgan Stanley writes off $9.4bn in sub-prime losses and sells a 9.9 per cent stake in the company to the Chinese state investment company CIC for $5bn to rebuild its capital.
Sensex ended up 71 points at 19,163 on December 20.
January 4, 2008: US unemployment rises sharply as job report sparks fall in stock market
Sensex remains unfazed and ends up 126 points on January 6.
January 7, 2008: President George W Bush admits that the credit crunch could slow the US economy in 2008, but says it is still fundamentally strong.
Sensex hits 21,000; ends up 61 points on January 8.
January 9, 2008: Bear Stearns boss James Cayne steps down after the firm reveals $1.9 billion in sub-prime losses, the largest in its history.
World Bank said that world economic growth will slow in 2008 due to credit crunch, but strong performance in China and India will cushion impact.
The Sensex ended with a loss of 288 points at 20,582 on January 10.
Image: People walk by the Morgan Stanley headquarters in Times Square in New York City | Photograph: Mario Tama/Getty Images
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