Chinaman Kuldeep Yadav picked up five wickets for 99 runs.
Resuming the day at 236/6, Australia's lower-order failed. Pat Cummins (25) Jose Hazlewood (21) and Mitchell Starc (29) tried to narrow the run gap but could not continue for long.
For India, apart from Yadav, Mohammed Shami and Ravindra Jadeja took two wickets each.
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