Tim Southee (4 for 49) was the pick of the Kiwis bowlers though he was a trifle expensive.
Kyle Mills (2 for 42) was also very effective.
The Indian innings began on a disastrous note with Dinesh Karthik, who has been in woeful form right through the series, returning to the pavilion in the very first over off Kyle Mills.
It was a horrendous shot from the Indian opener as he poked at a length delivery outside the off stump, edging it to wicketkeeper Gareth Hopkins behind the stump.
He paid the price for fishing out even without getting his eye in.
Virat Kohli, who replaced Rohit Sharma in the team, joined the action after Karthik's dismissal but could not survive long, being at the receiving end of a dubious decision.
Kohli (8) looked stunned when Sri Lankan umpire Ashoka de Silva gave him out when he edged an outgoing delivery off Tim Southee to wicketkeeper Hopkins.
Television replays picked up some noise and the snickometer showed there was a slight nick.
New Zealand's Tim Southee (R) appeals successfully for the wicket of India's Virat Kohli
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