Former Asian Tour champions Arjun Atwal and Jyoti Randhawa failed to recapture their opening day's form, but were still in the frame for the best-ever finish by an Indian side in the US $4 million World Cup of Golf by carding one-over 73 to be tied seventh.
The Indian duo share the spot with established teams like Australia, Germany and France apart from Asian teams Japan and Chinese Taipei.
The story of the day at the Victoria Clube de Golfe was a record-breaking performance by Argentina's Angel Cabrera and his teammate Ricardo Gonzalez, who shot an unbelievable 11-under for the alternate shot format and moved into contention.
The Argentines are one shy of the lead held by three teams, Sweden's Henrik Stenson and Niclas Fasth, Welshmen Stephen Dodd and Bradley Dredge and the defending champions from England, Luke Donald and David Howell.
It was always clear that the Indians would be hard-pressed to repeat their birdie-fest of opening day, when they had 10 birdies and one eagle.
Atwal and Randhawa, both playing their first World Cup, opened with a birdie in the alternate-shot format. But bogeys on fifth, seventh and tenth ruined their chances and then made up slightly with a birdie on par-5 17th that put them at 11-under for two days and in seventh place.
The first day showing had put the focus on them, but now with the focus off they can play comfortably and post a good score and hope for a top-five finish, which will in itself be record-breaking for the Indian duo.
Singapore, who won the Asian Qualifiers, were lying 18th and South Korea were in a tie for 19th.
Cabrera and Gonzalez were at the bottom of the leaderboard after Day 1 and they ended in second place. That brilliant 11-under 61 between them looked even more awesome as none of the other 23 teams managed to shoot lower than 5.
Cabrera has his 14-year-old son, Angel, caddying for him.
England's Luke Donald and Howell reached the turn in one over par 37 but then fought back with patience. They birdied the 12th and then birdied the last three holes for a three under par 69 to join Wales and Sweden at the top of the leaderboard.
Wales also staged a grandstand finish with four birdies in the last four holes for a five under par 67 to lie on 16 under par 128 as they look to win the title for the first time since 1987.
Sweden also posted a five under par 67 to lie on 16-under par after a steady round where Henrik Stenson and Niclas Fasth kept mistakes to a minimum. Three birdies in the last five holes ensured they would be out in the final group today.
