The 24-year-old Sehwag, known for his explosive hitting, cracked 16 fours and two sixes in a 212-ball 128 knock that took the home side to 203 for one after Craig McMillan had scored an unbeaten 100 to prop up the Kiwis.
McMillan, 27, hammered seven fours and a six in his 130-ball knock, which followed tons by Lou Vincent (106), Mark Richardson (145) and Scott Styris (119).
It was the 10th time in Test history that four batsmen had scored centuries in an innings and the second for New Zealand, after Fleming, Nathan Astle, Vincent and Adam Parore against Australia at Perth two years ago.
The total was New Zealand’s highest overseas, beating 553 against Australia at Brisbane in 1985, and their second-best ever after the 671 for four against Sri Lanka at Wellington in 1990-91.
Captain Stephen Fleming declared immediately after McMillan reached his sixth Test century with a single to short mid-wicket. Daniel Vettori was unbeaten on a breezy 50-ball 48.
But the Indian openers, Sehwag and Aakash Chopra (60) responded with a flurry of boundaries in their opening stand of 164.
The 26-year-old Chopra, who had made his debut in the first drawn test at Ahmedabad last week, slammed paceman Daryl Tuffey for two straight boundaries and Sehwag punished Ian Butler and medium-pacer Scott Styris with fluent off-side drives.
Sehwag got his 50, off 80 balls, by hitting off-spinner Paul Wiseman over long off for a huge six and then struck him for two fours in the same over.
Chopra reached his maiden test half-century in 119 deliveries with a quick single off Wiseman. But he could not last for much longer, edging Tuffy straight to Nathan Astle at slip.
Sehwag, who crossed 1,000 Test runs in his 16th match when he drove Butler for four through extra cover to move to 85, was hit on the helmet while trying to fend off a rising ball from Tuffey.
He responded with a hooked four to mid-wicket off the next delivery.
After spending 14 nervous minutes on 99, Sehwag raised his fourth Test century with a scampered single off left-arm spinner Daniel Vettori, who had outstanding figures of 24-14-27-0 but failed to make a breakthrough.
Stand-in Indian captain Rahul Dravid, leading because Saurav Ganguly is out with a groin injury, was unbeaten on nine.
Despite scoring a century, Sehwag slammed the flat pitches produced for the series.
The wickets have become a hot topic of discussion since the first match at Ahmedabad ended in a dull draw last week on a placid track, similar to the wicket at Mohali.
The Kiwis have never won a Test series in India, who have a formidable home record and have lost just one series, to South Africa in 2000, in the last 17 years.
NEW ZEALAND (1st Innings, overnight 536-5):
M.H. Richardson c Kumble b Harbhajan 145
L. Vincent lbw b Kumble 106
S.B. Styris lbw b Kumble 119
S.P. Fleming b Tendulkar 30
N.J. Astle c Patel b Harbhajan 18
C.D. McMillan not out 100
R.G. Hart b Kumble 11
D.L. Vettori not out 48
EXTRAS (B-21, LB-28, W-1, NB-3) 53
TOTAL (for six decl, 198.3 overs) 630
FALL OF WKTS: 1-231, 2-382, 3-433, 4-447, 5-507, 6-540.
DID NOT BAT: P.J. Wiseman, D.R. Tuffey, I.G. Butler.
BOWLING: Zaheer Khan 26-8-95-0 (2nb, 1w); Balaji 30-10-78-0 (1nb); Tendulkar 22-3-55-1; Kumble 66-17-181-3; Harbhajan Singh 48-7-149-2; Sehwag 5.3-1-22-0; Yuvraj 1-0-1-0.
INDIA (1st Innings:
A. Chopra c Astle b Tuffey 60
V. Sehwag not out 128
R.S. Dravid not out 9
EXTRAS (B-2, W-2, NB-2) 2
TOTAL (for one wkt, 69 overs) 203
FALL OF WKT: 1-164.
TO BAT: S.R. Tendulkar, V.V.S. Laxman, Yuvraj Singh, P.A. Patel, Harbhajan Singh, A.R. Kumble, Zaheer Khan, L. Balaji.
BOWLING (to-date): Tuffey 13-2-45-1; Butler 15-3-54-0 (2nb, 2w); Styris 6-2-14-0; Vettori 24-14-27-0; Wiseman 10-2-55-0; McMillan 1-0-6-0.—Reuters