March 16: US-based sub-prime firm Accredited Home Lenders Holding said it would sell $2.7 billion of its sub-prime loan book -- at a heavy discount -- in order to generate some cash.
On March 19, the Indian market closed at 12,645, up 215 points.
April 2 2007: New Century Financial, which was once the second-largest originator of subprime mortgages in United States files for Chapter 11 bankruptcy and lays off 3,299 people.
Sensex gained 169 points to close at 12,625 on April 3, 2007.
May 3, 2007: GM finance unit loses heavily on sub-prime mortgages, and UBS closes its US sub-prime lending arm, Dillon Read Capital Management.
Sensex ends down 144 points at 13,934, on May 4.
June 22, 2007: Investment bank Bear Stearns revealed it had spent $3.2 billion bailing out two of its funds exposed to the sub-prime market. The bailout of the fund was the largest by a bank in almost a decade.
The Index ended with a gain of 21 points at 14,488.
July 18, 2007: Bear Stearns rings the warning bell. It tells investors that they will get little, if any, of the money invested in two of its hedge funds after rival banks refuse to help it bail them out.
The India market was unrattled by the news, and it closed with a gain of 249 points at 15,550, on July 19.
Image: A Bear Stearns employee leaves the company's headquarters in New York | Photograph: Emmanuel Dunand/AFP/Getty Images
Also read: 11.2 million % inflation! How is Zimbabwe surviving
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