Resuming at 25 for 3, in reply to hosts' 233, Punjab batsmen were rattled by speedsters NP Singh, Vishnuvardhan and Kaushik Reddy who dismissed the visitors for 105 to give Hyderabad the crucial lead.
Only Ankur Kakkar showed some defiance as he stayed at the wicket for over 203 minutes to score 48 runs off 130 balls with six fours. The pick of the bowlers was debutant Kaushik Reddy who claimed 3 wickets for 29 runs in 12 overs.
The Hyderabad second innings started on a shaky note as their top four batsmen were sent back with the score reading 54 before Laxman steadied the innings.
Laxman's 59 came off 78 balls and giving him company at the crease was Vishnuvardhan (12).
The hosts now have an overall lead of 275 runs with four wickets in hand and two days' play left in this penultimate league match.