It was a dramatic collapse for the hosts, who were cruising along at 223 for three as they lost their last seven wickets for only 37 runs with Vinay grabbing five of those.
The India discard had figures of five for 27 in eight overs to get his 13th five-for in furst-class cricket.
For Punjab, Jiwanjot Singh (74) while Manan Vohra contributed 51 runs. Out of favour Yuvraj Singh looked good during his innings of 42 before a rash shot brought about his downfall.
With a full day's play lost, the first innings lead will be a crucial factor in this match as Karnataka have seasoned opener Robin Uthappa (25 batting) at the crease along with the talented Manish Pandey (8 batting).
While Rahul fished at an away swinger from Manpreet Gony with lack of decisive footwork, Agarwal chased at a fuller delivery from Jaskaran Singh, which pitched way outside off-stump as Gitansh Khera took his second catch.
Manan, who is one of the three uncapped players to have been retained by an IPL franchise (Kings XI Punjab), was aggressive from the start as he hit military medium pacer Ronit More for six of his eight boundaries.
He regularly beat the off-side cordon. He also hit a couple of more boundaries off Manish Pandey and leggie Shreyash Gopal.
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