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Gukesh walked out at around 3 am and he was immediately flanked by the jubilant crowd. In no time, he had garlands around his neck even as the police jostled to escort him out safely.
Several Grandmasters have come out of Velammal Institutions since 2005.
The Chennai-based teen bettered Gary Kasparov's record by quite a distance.
Last year, he won a silver medal at the Hangzhou Asian Games.
The 17-year-old from Chennai is on the cusp of becoming the youngest ever World Championship contender.
Praggnanandhaa is still fifth with six points with Gujrathi following him on five points.
The 17-year-old Gukesh is in joint lead with Russia's Ian Nepomniachtchi.
Gukesh and Nepomniachtchi have six points each with Praggnanandhaa, Caruana and Nakamura close on their heels half a point behind.
Nakamura, Gujrathi and Caruana share the fourth spot on 4.5 points.
The prize money for the Indian leg of the tour will be $500,000.