After a dominating morning session, in which they picked up three wickets giving away just 63 runs from 25.1 overs, the Indian bowlers kept up the pressure in the post lunch period with some tight bowling.
But the visitors could pick just one wicket as skipper Brendon McCullum and B J Watling played fighting knocks to help New Zealand add 59 runs in 29.5 overs in the post-lunch session.
The pitch on offer today at the Basin Reserve was a far cry from the juicy green surface of the first day and was a perfect platform for New Zealand to bridge the huge deficit after India made 438 in their first innings in reply to the hosts' 192.
But experience pacer Zaheer Khan inflicted the early damage, picking up two wickets in the opening session to reduce New Zealand to 87 for four.
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Zaheer (3/34) was the pick of the bowlers for India in the morning, but bowled only limited spells in the afternoon session.
But it was left-arm spinner Ravindra Jadeja (1-24) who turned out to be the only successful bowler for India after lunch before McCullum (44 not out, 138 balls, 4 fours) and Watling (24 runs, 96 balls, 2 fours) stitched a fighting unbeaten 52-run stand for the sixth wicket.
In a spot of bother, Corey Anderson (2) joined McCullum at the crease after lunch.