The tourists slumped to 27 for two before Brendon McCullum (38 not out) and Ross Taylor (18 not out) ensured there were no further losses.
India, resuming the second day on 329 for three, took their total toward 500 thanks to a career-best 69 from spinner Harbhajan Singh.
Harbhajan (69) hit five boundaries and three mammoth sixes after the hosts had lost five wickets for 29 runs, all of them going to the spinners led by captain Daniel Vettori who picked up three.
Deliveries from Vettori, playing his 100th Test, were seen to jump and turn sharply and the New Zealand batsmen may struggle against the Indian spinners Harbhajan and Pragyan Ojha.
Left-arm spinner Vettori added to his overnight scalp of centurion Virender Sehwag by dismissing India captain Mahendra Singh Dhoni, Zaheer Khan and Harbhajan in the post-lunch session.
Off-spinner Jeetan Patel, who was torn apart by Sehwag on the first day, picked up the prized wickets of Sachin Tendulkar (40) and Vangipurappu Laxman (40) and also dismissed Ojha. Debutant Kane Williamson accounted for Suresh Raina (three).
