Playing the last classical game against Carlsen ahead of the World Championship match scheduled in Chennai in November, Anand was outplayed by the young Norwegian.
Boris Gelfand of Israel joined Hikaru Nakamura of United States in lead on 3.5 points after winning his second game at the expense of Alexander Morozevich of Russia.
While Nakamura played his first draw sharing point with Dmitry Andreikin of Russia. With Gelfand and Nakamura in front, Carlsen and Mamedyarov are close behind on three points each.
Andreikin and Fabiano Caruana of Italy share the fifth spot on 2.5 points while Anand and Karjakin are joint seventh on two points each.