For months analysts have been screaming that the record rally in the markets have been on the back of a rally in the share price of HDFC twins, Reliance, TCS and Infosys.

On Wednesday something interesting happened. The major contribution to the dramatic fall in the Nifty came from TCS shares, which slumped 4.5 per cent. On Thursday, Reliance Industries another heavyweight had fallen near 6 per cent, and the biggest contributor to the Nifty fall.

The broader markets have seen such damage, that sanity is prevailing with investors now dumping heavyweights that have risen sharply in favour of some of the laggards. We are seeing buying in beaten down names like Yes Bank, DHFL, L&T Finance Holdings, PC Jeweller, PNB, Indiabulls Real Estate etc.

In fact, Punjab National Bank is now seeing good buying support and is among the names that traded higher on Thursday despite a crack in the Sensex of 800 points.

An interesting churn taking place

For long investors took shelter in TCS, Infoys, HDFC Bank and HDFC and mostly dumped all other stocks. The tide now seems to be turning. On Thursday, TCS was down 3.5 per cent and Reliance 7 per cent, dragging the indices lower, while several beaten down names are rising.

India Bulls Real Estate, which has fallen from levels of 240 to Rs 90 is among the gainers today. It was up 7 per cent on Wednesday, a day on which the Nifty declined 150 points.

Companies like PC Jeweller, which has fallen from levels of Rs 600 to Rs 55 was in the green seeing buyers, despite the Nifty down 259 points.

Interestingly, there seems to be some value buying happening in the other broader market, which was in the bear grip, which is a very good thing to happen. Finally we are seeing some sanity emerging in the broader markets, as investors dump heavyweight stocks in favour of beaten down names. This is a sigh of relief to investors who have seen the broader markets being pounded.

Will the trend last? One cannot be sure, at least investors have begun chasing stocks that offer value.