After Ishant Sharma provided a couple of breakthroughs in the opening session, Ravichandran Ashwin and Ravindra Jadeja ripped through Australia's middle-order. The bowlers were also helped by some atrocious shot selection on the part of the Aussie batsmen.
While Ashwin had figures of three for 33 in 22 overs, Jadeja was equally effective as he took 2 for 17 in 13 overs.
From a relatively secure 94 for two at lunch, the visitors looked in a tearing hurry as they paid dearly for their indiscretion, losing wickets in a heap.
Ed Cowan (37) did all the hardwork surviving the dangerous first session, playing and missing on a number of occasions. Just when he looked set, Cowan went for a sweep shot and was bowled round his legs.
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Australian cricket's newest 'Enfant Terrible' Shane Watson didn't impress on his Test captaincy debut. Having survived a stumping appeal in the first session, the all-rounder was removed by a typical left-arm spinner's delivery from Jadeja.
Matthew Wade (2) was caught by silly point fielder to give Ashwin his second wicket, while IPL's newest 'Million Dollar baby' Glenn Maxwell gave Jadeja the charge when he offered a simple catch to Ishant at mid-on.