Playing in this knockout event after a gap of 15 years, Anand had lost the first game against Kovalyov and had to win the second to level score and force a subsequent tiebreaker. However after 31 moves, Anand decided that he did not have much hopes of winning and offered a draw to sign his exit.
This might well be the end of Anand's aspirations for a World Championship match in 2018 unless he gets a wildcard in the next year's candidates' tournament.
Things had not been very smooth for Anand here and it was another bad day in office. To win on demand as black is a very difficult task against quality opposition in today's chess and that was the primary reason for Anand's ouster.
The English opening by the Canadian gave white a little advantage and Anand's attempt at complications did not materialise as much as he might have liked.
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GM B Adhiban played out a draw with Ian Nepomniachtchi of Russia for the second time in two days and the two will now face-off in the tiebreak games.
The all-Indian duel between S P Sethuraman and P Harikrishna also ended in a draw after a thrilling game to set up the tiebreak games. It may be recalled that in the last World Cup Sethuraman had ousted Harikrishna in the same round.
Karjakin was outdone by his younger compatriot Daniil Dubov while Adams lost to Maxim Rodshtein of Israel.
The World Chess Cup started with 128 players in the first round on a knockout basis with USD 1.6 million as total prize pool. Besides there are slots for the top two finishers in the next Candidates' tournament.
Each round has two games under normal time control followed by tiebreak games of shorter duration in the event of a tied result.
If the deadlock continue the players fight it out in two blitz games of five minutes and if still tied, a final Armageddon game is played to determine the winner.
Important and Indian results after round 2 game 2:
Aleksey Dreev (Rus) lost to Magnus Carlsen (Nor) 0-2; Wesley So (Usa) drew with Matthias Bluebaum (Ger) 1-1 goes to tiebreak; Lenic Luka (Slo) drew with Fabiano Caruana (Usa) 1-1 goes to tiebreak; Vladimir Kramnik (Rus) beat Anton Demchenko (Rus) 1.5-0.5; Hou Yifan (Chn) drew with Levon Aronian (Arm) 1-1 goes to tiebreak; Shakhriyar Mamedyarov (Aze) drew with Yuriy Kuzubov (Ukr) 1-1 goes to tiebreak; Bruzon Batista Lazaro (Cub) drew with Hikaru Nakamura (Usa) 1-1 goes to tiebreak; Maxime Vachier-Lagrave (Fra) beat Boris Grachev (Rus) 1.5-0.5; Jorge Cori (Per) drew with Alexander Grischuk (Rus) 1-1 goes to tiebreak; V Anand (Ind) lost to Anton Kovalyov (Can) 0.5-1.5; Karjakin Sergey (Rus) lost to Daniil Dubov (Rus) 0.5-1.5; Alexander Motylev (Rus) drew with Anish Giri (Ned) 1-1 goes to tiebreak; B Adhiban (Ind) drew with Ian Nepomniachtchi (Rus) 1-1 goes to tiebreak; P Harikrishna (Ind) drew with S P Sethuraman (Ind) 1-1 goes to tiebreak; Le Quang Liem (Vie) lost to Vidit Gujrathi (Ind) 0.5-1.5.