Runner hit by deflected batted ball

[BriefcaseJohnny]

Apologies if this has been addressed elsewhere, but I couldn't find it.

Situation: two out, runner on first.

The batter hits a sharp grounder up the middle that deflects off the pitcher's glove, then clearly nicks the heel of the runner advancing from first to second, then is fielded by the second baseman, who throws the batter out at first.

What is the correct ruling on this play?

(In the instance I witnessed, the umpire initially ruled the runner advancing to second out for being hit by a batted ball, then on appeal by the batting team reversed himself and ruled a dead ball and had the batter resume his at bat. The team in the field argued that the initial call was correct because the runner had been hit by a ball not touched by an infielder *other than the pitcher*.)

Thanks in advance for any light you can shed on this.