The visitors on day two carried on with their lackluster performance in Sydney to give the home team a massive upper hand by the end of the day.
Australia now leads the opponents by 501 runs after putting up a gigantic score of 572 runs in their first innings.
Resuming their innings from 348/4, Australia pushed the momentum well to capitalize on the lack of discipline from the Indian side.
Steven Smith went on to score his fourth century in the series, making the skipper register a ton in each of the test matches from the ongoing series. However, their ride was hit with the prime blow by Mohammad Shami, who sent back Shane Watson for 81.
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India yet again managed to pull out quick dismissals with the wicket of Steven Smith (117), clinched by Umesh Yadav. However a failure to captivate on the same led the Australians to smoothly build the innings through Shaun Marsh and Joe Burns.
The duo helped the home side to ease past 500, but Mohammad Shami later kept the wickets falling at constant intervals. Shami achieved his second five-wicket haul (5/112) in test matches with the dismissal of Joe Burns (58), Shaun Marsh (73) and Ryan Harris (25).
Australia declared the innings with their scores at 572/7 and was able to knock down an early fight-back from the visitors in their first innings, with an early wicket.
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Murali Vijay, who was on a good run in the initial two matches, failed to keep his willow hammering as the opener fell before Mitchell Starc without opening his account.
Lokesh Rahul (32) and Rohit Sharma (40) however went fine through the test of patience to prevent any further loss of wickets.
The day ended with India at 71/1, trailing the opponents by 501 runs. With three days remaining, India would be eyeing to build their innings through patience for keeping alive the hopes of rescuing their team from a 3-0 defeat in the series.