Having lost the wickets of KL Rahul (51), Abhinav Mukund (16), Virat Kohli (15) and Ravindra Jadeja (2), India ended the day at 213 runs for the loss of four wickets.
Josh Hazlewood bowled brilliantly and picked up three wickets for the visitors.
Earlier, Australia were bowled out for 276 runs and it was Ravindra Jadeja's brilliant bowling which made it possible.
He finished with a magnificent figure of 6/63.
Australia managed to take 87 runs lead in the first innings.
Earlier, India had scored 189 runs in their first innings.
Australia is 1-0 up in the series.
Image: BCCI Twitter page
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