Gujrathi won the match with black pieces as he exploited a tactical oversight from his famous opponent.
D Gukesh played out a creditable draw against top seed Fabiano Caruana but slipped a rung to the joint second position.
Vantika Agrawal delivered when it mattered most as she defeated Grandmaster Irina Krush, helping India secure a 2-2 draw against United States.
After scoring their fifth victory on the trot, the Indian men maintained their joint lead with 10 points along with China, Vietnam and Hungary.
The Indian men's team got off to another 3-0 start, led by Dommaraju Gukesh's triumph over H Stefansson of Iceland, in the second round.
The Indians were never the favourites in the entire scheme of things but yet, Gukesh has withstood the early storm and so has Praggnanandhaa.
Gujrathi and Erigaisi will represent India in the men's individual event while Koneru Humpy and D Harika will do so in the women's section.
Hungary will officially host the 45th edition of the Olympiad for the first time, having hosted the second unofficial Chess Olympiad in 1926.
Gukesh tried his hands at the Ruy Lopez as white but did not get much against Praggnanandhaa. Both the teenagers have been showing great skills here against the world's best and there was nothing to choose between them when pieces flew off the board in tandem. The game was drawn in 41 moves.
Indian Grandmaster Arjun Erigaise secured the WR Chess masters title after defeating Maxime Vachier-Lagrave of France in the Armageddon game following two draws in Classical chess during the final.
Gukesh to clash with Alireza on what promises to be a photo finish
The Indian challenge in the women's section might already have ended as Zhongyi stood firmly ahead on five points while Goryachkina had 4.5 points in her kitty.
Grandmaster R Praggnanandhaa and Vidit Gujrathi scored crushing victories, while D Gukesh held on to the joint top spot with a draw in a brilliant sixth-round outing for the Indian men's team at the Candidates Chess Tournament in Toronto.
Praggnanandhaa blundered for the second day running and lost to Richard Rapport of Romania in the third round
The 17-year-old Gukesh is in joint lead with Russia's Ian Nepomniachtchi.
Grandmaster D Gukesh will face his first major challenge since becoming world champion when he begins his campaign in the Tata Steel Chess tournament, which starts on Friday in Wijk Aan Zee, The Netherlands.
India made history as both its men's and women's teams clinched their first-ever gold medals at the 45th Chess Olympiad. The men's team defeated Slovenia and the women's counterparts overcame Azerbaijan in the final round.
Indian Grandmaster Vidit Gujrathi crashed through the defences of world number three Hikaru Nakamura of United States, while R Praggnanandhaa went down to compatriot D Gukesh in the second round of Candidates chess tournament in Toronto.
Gukesh Dommaraju played black but managed to hold on for a gutsy draw to split points in the Prague Masters Chess tournament.
Indian Grandmaster R Praggnanandhaa crashed through the defenses of compatriot Vidit Gujrathi but D Gukesh suffered a shock defeat from a position of strength against Czech Republic's David Navara of in the fifth round of the Prague Masters in Prague.
Indian Grandmaster R Praggnanandhaa committed a time-pressure blunder as he suffered defeat at the hands of Parham Maghsoodloo of Iran in the second round of Prague Masters Chess tournament in Prague.
'It is truly unfathomable how this kid would come from a country with no chess culture and not only become World Champion, but inspire generations of Indian kids to push chess forward. The legend, @vishy64theking!'
India's D Gukesh bounced back with a finely crafted game to outwit compatriot Vidit Gujrathi and regain his joint lead with Ian Nepomniachtchi of Russia after the eighth round in the Candidates chess tournament in Toronto on Friday.
Three of the four Indian Open team players are in line for gold and silver medals for the individual performance.
Grandmaster R Praggnanandhaa produced a spectacular game to get the better of fellow-Indian Vidit Gujrathi in the third round of the Candidates Chess tournament in Toronto on Saturday.
'It is not just D Gukesh, Arjun Erigaisi, Praggnanandhaa and Vidit Gujrathi.' 'There are another 20 players just behind them. Nobody imagined this was possible 5 years ago.'
With Georgia likely to post a victory against overnight leader Kazakhstan, it seemed that the Indian eves were likely to regain the top position and become the firm favourites for the gold medal again.
Indian Grandmaster D Gukesh scored a crushing victory over Alexander Donchenko in the 10th round of Tata Steel Masters in Wijk Aan Zee, Netherlands on Thursday.
Indian GM D Gukesh overwhelmed Dutch player Max Warmerdam for his third victory on the trot and elevated himself to a joint lead after the seventh round of the Tata Steel Masters Chess tournament in Wijk Aan Zee, Netherlands on Sunday.
The triumph entitles Gukesh a clash against reigning world champion Ding Liren of China in the last quarter of the year.
Grandmaster R Pragnanandhaa held tournament leader and defending champion Anish Giri of Holland to a draw on the day.
Indian Grandmaster D Gukesh held on to the joint top spot with Russian Ian Nepomniachtchi after they played out an easy draw in the 10th round of the Candidates chess tournament in Toronto.
Interestingly, all of R Praggnanandhaa's victories have come at the expense of the Indians so far in the tournament.
Another game to end through repetition of moves was between Gukesh and Gujrathi.
Indian Grandmaster Vidit Gujrathi drew with Richard Rapport of Hungary in the ninth round to be in joint third place with 5.5 points in the Tata Steel Masters in Wijk Aan Zee, The Netherlands.
India became only the third country to win both the men's and women's gold medals at the same Chess Olympiad.
Five-time world champions Viswanathan Anand and Magnus Carlsen played out a draw in the top duel of the opening day as the second edition of the Global Chess League began with players from around the world squaring off in London on Thursday.
After the draw with Iranian turned French player Firouza, Gukesh has seven points for his sole second spot.
The men's team comprises Grandmasters D Gukesh, Gujrathi, Erigaisi, P Harikrishna and R Praggnanandhaa.
Pragg, Gujrathi out of contention