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The Indian GM scored the famous win in round eight of Tata Steel Chess India blitz event.
Keralites Nihal Sarin and S L Narayanan finished on four and three points respectively.
In a round-five game of Tata Steel Chess India Rapid, the Tamil Nadu GM edged his good friend from Kerala.
Fellow Malayali GM, Nihal Sarin, also remained unbeaten on day one.
World No. 1 Magnus Carlsen is the star attraction of the event.
The Kerala-based Grandmaster remained unbeaten in the nine-round tournament.
So took home the first prize of $200,000, while Keralite Nihal was richer by $100,000.
The 16-year-old has attained two of the three requisite norms to become an IM.
Arjun also remained unbeaten through the nine rounds and finished half-a-point ahead of Uzbekistan's Javokhir Sindarov.
The Indian GM shocked super GM Fabiano Caruana in their eighth-round clash.
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