This is what my parents did recently at Chennai consulate:
1) There will be a counter in the consulate where the folks prepare a mini folder with just the necessary application forms (ex: DS156, DS157, original passport, copy of the HDFC receipt, DD for $50, 2 passport sized photos etc). This folder must be submitted right after reaching the consulate officer’s counter.
2) When the VO asked ‘show me the papers from your daughter’, my father pushed the entire sponsor folder into the counter. She quickly browsed through whichever papers she needs and granted the visa.
The first folder must be submitted right after your parents reach the counter. The sponsor folder (entire folder) can be shown when asked. Your parents’ property/salary/tax/bank related papers must be shows as and when asked one at a time.