At 8-under Sharma, who shot a 2-under 70 in the opening round, is four shots behind the leader, Kristoffer Broberg (68-64).
India's Ajeetesh Sandhu opened with a solid three-under 69, even as compatriot Shubhankar Sharma fought back superbly on the second nine to card two-under 70 in the first round of the Dutch Open golf tournament.
The national body also recommended Udayan Mane, Rashid Khan and Diksha Dagar for the Arjuna award.
At four-under 140 overall, Chawrasia is fifth, three shots behind the leader, Alejandro Canizares (67-70).
Sharma, who ended 2020 with a good set of results, had a disappointing start but he hopes for a better week as he tees off with George Coetzee and Andrea Pavan early in the morning at 7.30 am.
After a first round 76, which included a quadruple bogey on Par-5 12th, Shubhankar struggled in the second to 8-over 79, including two doubles, seven bogeys and three birdies.
Shubhankar Sharma among 32 golfers to make cut at Aphrodite Hills Cyprus event; SSP Chawrasia eliminated
Sharma, who was 5-under through 16 holes, completed the second round at the same score and moved to the third round in T-11th place. His two-round total was 9-under but the scores will now be reset for the third round due to the format of the Cyprus Showdown.
"A mixed bag, that's what the round was," said Sharma, who was also happy that he did not allow shots to slip away and was still in with a chance.
Meanwhile, India's other challenger, SSP Chawrasia (71-70), at 1-under, will miss the cut, which will likely fall at 3-under.
India's Shubhankar Sharma gets off to bogey-free start in Cyprus, finishes tied-18th after first round
Sharma birdied the fifth and ninth on the first half of the course and then closed with birdies on 17th and 18th.
It was Sharma's third sub-par round of the week as he showed more control and confidence than the earlier days after rounds of 71-72-70 to total 7-under 281.
Indian golfer Shubhankar Sharma endured an early rough patch before a strong finish to card a one-over 73 in the final round and sign off tied 48th at the BMW PGA Championship
It was Sharma's best finish in the nine starts that he had since the European Tour re-started after the coronavirus-induced break. His previous best finish was T-44 at Portugal Masters.
Hero Cup 2020: Shubhankar Sharma bows out; Sebastian Garcia Rodriguez, Sam Horsfield share halfway lead on European Tour
Shubhankar Sharma, who shot 73 in the first round, seemed to have put himself way off the cut line with three bogeys on the trot around the turn as he dropped shots on ninth, 10th and 11th holes at which point he was four-over for the tournament.
Hero Open 2020: Shubhankar Sharma fights hard to make the cut; Sebastian Garcia Rodriguez remains on top
At four-over for the tournament with seven holes to go, Shubhankar was in danger of missing the cut, before he started fighting back with birdies on 12th and 13th to get to one-under for the day and two-over for the tournament.
Coronavirus Outbreak: Pandemic break a blessing in disguise, allowed me to reassess my game, says golfer Shubhankar Sharma
Sharma, a 2018 Asian Tour Order of Merit champion, believes he will be in better form when he tees up for what will be his first professional tournament in four months.
Tokyo Olympics 2020: Qualifying extension gives golfers Shubhankar Sharma, Shiv Kapur, Anirban Lahiri a chance
International Golf Federation and International Olympic Committee (IOC) announced an adjustment to the qualifying system, handing a chance to many Indian golfers
Coronavirus Outbreak: 'Nice to hit pause button, spend time with parents', says Indian golfer Anirban Lahiri
Lahiri, who has made Florida his base since he started playing on the currently-suspended PGA Tour, the world's biggest and strongest professional golf circuit, has seldom spent as much time in India, as he has now
Indian Open to kick off on 19 March with strong local and international contingent expected to participate
The flagship event of Indian golf -- which is also the longest-running international event in India — will see almost all top Indian golfers, including past champions such as SSP Chawrasia (2016 and 2017), Anirban Lahiri (2015) and three-time winner Jyoti Randhawa (2000, 2006 and 2007), in action at the Gary Player layout.
Indian golfer Shubhankar Sharma rounded off the week with a three-under 68 for a total of nine-under 275 to finish tied seventh at the Italian Open.