India's reply started disappointingly and James Pattinson (3-25) took two early wickets to leave the hosts on 12-2 early in their innings.
However, Sachin Tendulkar (71*) and Virat Kohli (50*) both made half-centuries to guide India to 182-3 at the close of play.
Read how the day unfolded below.
3.40amAshwin was very impressive yesterday and he looks to be battling with Clarke for the man of the match award already.
3.46amIndia will of course want to wrap up this innings within the first hour this morning but we may see Australia launch a counter attack in an attempt to reach 400 quickly.
3.49amIn truth, it should be another decent day for batting despite the spin so if India can restrict Australia to a total below 350, they will have done very well.
3.54amWe're just a few minutes away from play now on what promises to be a fascinating day of Test cricket.
AUS 316-7Clarke is out in the middle with Siddle and Dhoni is setting his first field of the day. It will be Ashwin who takes the ball first, here we go.
AUS 316-7Siddle negotiates the first over nicely, defending a maiden despite Ashwin being able to find some good bounce.
AUS 319-7It will be spin from both ends as Jadeja begins his first spell of the day. Clarke blocks early in the over before cutting a shorter ball to collect two runs. The skipper then skips down the pitch to push a single to long-off.
AUS 319-7Ashwin is varying his deliveries well and is unlucky not to claim a wicket when Clarke edges the ball just short of Sehwag at slip. A quicker ball forces Clarke onto the back foot and he does well to block the danger. Second maiden over of the day for Ashwin.
AUS 319-7Siddle plays a defensive shot with soft hands but some sharp fielding prevents him from picking up a single. Much better from Jadeja and it's another single.
AUS 323-7Clarke is eager to use his feet but Ashwin is doing well to force the visiting captain back on the crease. However, Clarke does manage to free his arms after taking a couple of steps down the track, lofting the ball over mid-on for the first boundary of the day.
AUS 324-7Siddle will be happy to play a supporting role this morning but he's certainly no amateur with the bat. A wayward delivery is clipped off the pads for a single to fine leg before Clarke's bid for a run is stopped by Vijay at square leg.
AUS 324-7There doesn't seem to be as much in it for the spinners this morning. Clarke is happy to defend Ashwin's over and it's another maiden.
AUS 324-7Jadeja loses his length early in the over but Clarke hammers his cut shot straight to Vijay at point. Another cut shot follows but Vijay moves quickly to prevent the single.
AUS 326-7First bowling change of the morning as Sharma comes into the attack to replace Ashwin. The seamer finds some good bounce early on in the over but he's left frustrated when Siddle earns a single with a thick edge to third man. Clarke then nudges the ball through mid-wicket for a run to steal the strike.
AUS 329-7Ashwin switches ends, replacing Jadeja. Clarke takes a single with a flick to fine leg. Siddle pushes the ball wide of Sehwag at slip and runs well to collect two more. Three from the over.
AUS 329-7Australia will be happy with this start and if these two bat for another hour, a total of 400 looks likely.
AUS 332-7Siddle stands tall to drive the ball through the gap on the off-side, picking up two runs in the process. Clarke opens the face of his bat to guide a single to third man. Sharma responds with a bouncer but Siddle has plenty of time to duck under the danger.
AUS 333-7Clarke thinks about charging down the pitch but has to adjust quickly when Ashwin sends down a quicker delivery. A shorter ball is cut to deep cover for a single by the touring skipper. Ashwin delivers a superb reply to Siddle but the edge drops agonisingly short of the static Sehwag at slip.
AUS 336-7Clarke is off strike early in Sharma's over, driving the ball to Vijay in the deep on the off-side. Siddle guides a single to Ashwin at third man. Clarke ends the over by lofting the ball into the air to third man for another run. It may not be enthralling cricket so far but this is very good from the tourists.
AUS 337-7Ashwin is producing all of his variations this morning but he can't prevent Clarke from nudging the ball to mid-off for a single midway through the over. Good work from the spinner and he continues his impressive start to the day.
AUS 341-7Sharma goes much fuller early in his new over and Clarke can only pick out fielders with his attempted drives. A nudge off the thigh pad earns the centurion a single before Siddle adds another run with a similar shot to deep square leg. An inside edge deflects off Clarke's pads, resulting in two runs to fine leg.
AUS 347-7Ashwin has Siddle shuffling at the crease but a late cut shot beats Harbhajan at backward point and it's four runs to Australia. A thick edge allows Siddle to add two more runs at the end of the over. India desperately need a breakthrough soon.
AUS 348-7Kumar is on for his first bowl of the day, replacing Sharma. Clarke plays a cut shot past point to find a single. Siddle crunches a drive but hits the ball straight to Vijay. Good start from Kumar but there's very little encouragement for the seamers. Time for a drinks break.
AUS 353-7Harbhajan is thrown the ball and will begin his first spell of the day. Dhoni needs something from his experienced spinner here. Clarke easily pushes a single onto the leg-side and Siddle is then given a lifeline as he edges the ball past Dhoni to pick up four runs in the most fortunate of ways.
AUS 356-7Clarke produces two textbook straight drives but he can't pick the gap with either shot. There's an lbw appeal when Clarke misses after shuffling across the crease but the hopeful pleas are quickly rejected. A thick edge beats deep point but Ashwin does well to restrict Clarke to three runs.
AUS 357-7Harbhajan goes full to Clarke but the Australian skipper pushes the ball through the covers to bring up the fifty partnership between him and Siddle. Just a single from the over and India have gone very flat in the field.
AUS 358-7Jadeja is back for a new spell and he's so close to making the breakthrough! Clarke nudges the ball straight to silly point but Pujara can't adjust in time to make the catch. An enthusiastic lbw appeal is then turned down, with Clarke appearing to get outside the line of off stump. A single to point ends what is a very good return for Jadeja.
AUS 358-7Harbhajan is much quicker in his new over, preventing Clarke from using his feet as often. It's a maiden from the spinner but the wickets just aren't coming for the hosts.
AUS 359-7Jadeja delivers a beautiful delivery, beating the edge of Siddle by a matter of inches. The batsman guides a wider ball past point for a single and Clarke is content to block out the remainder of the over.
AUS 361-7Harbhajan is bowling with a rhythm that was missing yesterday and his extra bounce is beginning to cause some problems. Siddle whips the ball to mid-wicket for a single before Clarke nudges one to long-on. Another good over from Harbhajan.
AUS 361-8A wicket comes out of nowhere for India. Clarke attempts to loft Jadeja out of the ground for six but slices the ball into the air, with Kumar taking the catch in the deep on the off-side. Superb innings from the Australian skipper and he's set his team up for a good total. James Pattinson is the new batsman.
AUS 361-8Siddle is more than happy to block out the remainder of Jadeja's over. We may see some shots played by this pair soon. It's a maiden over.
AUS 364-8Pattinson is off the mark with a couple of runs to fine leg before adding a single with a nudge onto the leg-side. Siddle can't pick the doosra from Harbhajan and he's lucky when the ball deflects off his thigh pad.
AUS 364-9Siddle's luck doesn't last for long as he edges a spinning delivery straight into the grateful hands of Sehwag at slip. Harbhajan has a wicket in his 100th Test match and India are close to wrapping up this innings.
AUS 367-9Pattinson hurries a single to get off strike at the start of Jadeja's over. Nathan Lyon is the new batsman and he is immediately off the mark with a thick inside edge to square leg for a single. Pattinson adds one more run in the over with a push to long-on.
AUS 372-9Harbhajan offers a freebie to Pattinson outside off stump and even a number 10 batsman can cut that delivery to the rope for four runs. A huge lbw appeal follows but Mr Dharmasena shakes his head. Replays suggest that it was pretty close but Pattinson moves on and ends the over with a single to long-off.
AUS 372-9Harbhajan is still having a moan at the umpires and he needs to be careful to not overstep the mark. Ashwin has returned for a new spell and he's met with some stubborn defence from Pattinson. Maiden over and just for the record, replays show that Harbhajan's appeal for lbw was correctly turned down.
AUS 372-9Jadeja is back into the attack and he's the latest bowler to have an lbw appeal rejected, with Lyon just getting outside the line of off stump while sweeping. Good return for Jadeja, maiden over.
AUS 372-9Superb bowling from Ashwin as he gets one to bounce and spin before beating Pattinson's outside edge. The Australian duo are battling well and they have just under 10 minutes to survive before lunch.
AUS 372-9Jadeja races through another over, with Lyon once again looking an lbw candidate when he misses a sweep shot. It's another maiden and India can sense that 10th wicket coming.
AUS 372-9Pattinson is completely bamboozled by another beauty from Ashwin just outside off stump. Tendulkar does well at backward point to block a cut shot, ensuring that the run of maidens continues.
AUS 376-9Jadeja finds Lyon's edge but the ball drops short of Sehwag and the Australian pair rush a single to end the run of 32 dot balls. Pattinson finds the gap on the off-side to collect three runs, with Sharma doing the fielding at deep cover.
AUS 376-9Sharma is back for a new spell and he'll be desperate to claim the final wicket. Pattinson senses the break is close and resorts to defence after flirting with a wider delivery from the seamer.
AUS 378-9It's not time for lunch just yet as Jadeja is thrown the ball to begin a new over. Lyon finds a single early on, bringing Pattinson on strike. An expansive shot is miscued to mid-wicket but a nudge to point a ball later produces a single.
AUS 380-9Pattinson gets on top of the bounce well to clip a single to square leg early in the new over from Sharma. Lyon is forced to take evasive action when Sharma fires in a sharp bouncer. A mistake from Dhoni behind the stumps gifts Australia a bye.
AUS 380-9Ashwin is back into the attack and he thinks he has his man but the lbw appeal is rejected by Mr Dharmasena. Lyon looks like he's been given a huge slice of luck there, with replays proving the ball would have hit leg stump.
AUS 380Lyon attempts another sweep shot but he gloves the ball past Dhoni and Kohli reacts at leg-slip to take a stunning catch. Ashwin has his seventh wicket of the innings and Australia post 380.
6.17amLunch: That wicket brings the first session to a close and India will be relieved to have finally wrapped up the tail. 380 does look a good total on this pitch, with spin sure to play an even bigger part as the match progresses.
6.18amWe're going to take a quick break during lunch but make sure you return in around 30 minutes as India begin their reply.
6.53amWelcome back everyone, we're only a few minutes away from the resumption of play in Chennai. Australia will be targeting early wickets but India's batsman will have other ideas.
IND 0-0Sehwag and Vijay are out in the middle and are ready to begin the innings. Mitchell Starc will open the bowling.
IND 1-0Starc is showing some good pace in his first over and he's keeping the ball just back of a good length to Vijay. The right-hander collects his first run with a nudge to square leg, bringing Sehwag on strike. Sehwag leaves outside off stump and it's just the single from the over.
IND 5-0Vijay punishes Pattinson for straying onto the pads, flicking the ball to fine leg for four runs. The opening bowler adjusts his line and finds a dangerous full length to Vijay. Good response, it's four from the over.
IND 11-0Sehwag has his first run with a push to deep point before Vijay finds the rope at fine leg once again with a nudge off his pads. A hurried single follows and Sehwag is fortunate that Warner's throw is off target or he would have been gone.
IND 12-2Remarkable moment. Sehwag stabs the ball into the ground but loses sight of it when it bounces close to his head, landing on top of leg stump. Amazing dismissal. India are in real trouble now.
IND 24-2Tendulkar comes out to a big ovation and he's off the mark in style, driving the ball through cover for four runs. The little master then opens the face, guiding the ball through third man for another boundary. Tendulkar makes it three boundaries from the over as he flicks the ball off his pad to the fine leg rope.
IND 29-2Starc continues his spell but one poor delivery spoils a good over. Pujara takes advantage of a short ball, cutting to point for four runs.
IND 33-2Siddle is on to replace Pattinson and he also adopts a full tactic. Pujara and Tendulkar negotiate the over well, collecting four runs.
IND 34-2Starc has changed angles, moving round the wicket to Tendulkar. A yorker almost surprises the batsman but Tendulkar defends well before adding a single with a nudge to square leg.
IND 34-2Whisper it quietly but Tendulkar's game looks in much better shape early in this innings than it has done recently. Siddle is very accurate in the over but he can't find a way through. Maiden and it's time for a drinks break.
IND 39-2Starc continues and he concedes two singles early in the over. Pujara rocks back to flick the ball off his toes for a couple more and adds another single to steal the strike.
IND 47-2Pujara pushes Siddle's first ball onto the leg-side for a single, bringing Tendulkar on strike and he reaches the boundary rope with a perfectly timed cut. A mistake from Starc at mid-off allows Tendulkar to hurry a single. Another error in the deep, this time from Henriques, gifts the batsman two more runs. One more single follows and it's eight from the over.
IND 50-2Lyon is given his first bowl of the innings and he immediately finds some small spin outside off stump. A push down the ground brings Tendulkar a single and Pujara scores a run with an almost identical shot a ball later. Tendulkar drops to one knee to play a paddle sweep and picks up another run.
IND 51-2Henriques is into the attack for the tourists and the seamer will be desperate to add some wickets on debut to that half century he hit yesterday. Tendulkar picks the gap at cover to cruise a single, good start from Henriques.
IND 56-2Tendulkar goes for a big shot but doesn't get the contact quite right and the ball drops short of the fielder in the deep on the leg-side, resulting in a single. Pujara punishes a full toss from Lyon by driving powerfully through the covers for four.
IND 56-2Henriques is very accurate and his action looks to be pretty solid. Tendulkar is given no space during the over and blocks out a maiden,
IND 63-2Siddle is back and he finds the slightest bit of movement back into Pujara but the batsman is able to work the ball onto the leg-side for a single. Tendulkar opens the face again to collect a run to deep point. The fifty partnership is reached when Pujara guides the ball to the third man boundary rope for four. Great work by these two and Australia will be worried by their progress.
IND 69-2Superb from Pujara as he whips the ball off his toes to score four at the beginning of a new over from Henriques. A nudge past point brings another run and Tendulkar ends the over by scurrying for a single following a push to mid-off.
IND 72-2Starc comes on to replace Siddle and he's immediately whipped through mid-wicket for three runs by Tendulkar. The left-handed bowler is persisting round the wicket but he doesn't look as threatening from that angle. Three from the over.
IND 75-2Lyon is back with ball in hand but he can't prevent Tendulkar from picking up a single to fine leg. Pujara takes a couple of steps down the pitch before punching the ball to long-on for another run. One more single follows, good return from Lyon.
IND 80-2Tendulkar gets off strike early in Starc's new over with a flick onto the leg-side. Lyon does very well at cover to block Pujara's drive but the right-hander finds a single on the off-side just one ball later. Three more are added to the total and it could be time for another Pattinson spell.
IND 84-2Lyon strays onto the pads and Tendulkar gratefully works the ball to fine leg for two runs. A big lbw appeal follows but Marais Erasmus decides against giving Tendulkar out. Another single follows before Pujara pulls hard to deep square leg for a run.
8.44amTea: Great work from Pujara and Tendulkar to negotiate that difficult session. India were in big trouble at 12-2 but the current duo have halted Australia's progress.
8.49amTendulkar may have been given a lifeline with that lbw decision. Replays suggest it was pretty close but the little master is still there and that's all that matters to India. Australia will need a breakthrough quickly after the break because this pair will bat for a long time if given the chance.
8.53amIf India can make it to the end of the day without losing another wicket, they'll be on course for a good score. Three wickets would make it a big session for the tourists.
8.59amThere's very little swing around and the ball doesn't seem to be spinning for Lyon, meaning Pattinson's next spell could be vital. Australia have learned that full bowling is the way to go on this pitch and Pattinson's pace was superb earlier in the session.
IND 84-2It will be Starc who bowls the first over of the new session, the next couple of hours could be vital.
IND 84-2Starc is still bowling from round the wicket and he doesn't cause Pujara any problems from that angle. It's a maiden over.
IND 90-2It's Lyon who will continue his spell but he's immediately too short and is lucky not be cut to the boundary. Tendulkar picks up a single a ball later with a nudge to square leg before Pujara reaches the rope with a cut shot backward of point. One more single is scored in Lyon's over, good cricket from India.
IND 93-2Starc strays early in his over and concedes a leg-bye, allowing Pujara to get off strike. Tendulkar calls for a single but it's the wrong choice and if Warner had hit the stumps, Tendulkar would have been sent packing. A thick edge from Pujara brings a single and he'll keep the strike for the next over.
IND 94-2Pujara plays shots on both sides of the wicket but struggles to score early in Lyon's over. An inside edge allows the right-hander to collect a single from the final ball, much to the frustration of Lyon.
IND 100-2Pattinson is back into the attack following his successful spell earlier. Pujara is immediately off strike with a single to third man and a wayward delivery gifts the hosts a leg-bye. Great timing from Pujara as he earns two through mid-wicket. Another run sees Pujara move to 43 and it's six from the over when Tendulkar pushes the ball to deep point.
IND 103-2Tendulkar edges closer to fifty with two runs past point at the start of Lyon's new over and moves to 44 with a nudge down the ground. Too easy for India at the moment.
IND 105-2Pattinson begins his new over with a full length but a bouncer later in the over results in a wide. Tendulkar collects a couple on the leg-side.
IND 105-3Pattinson makes the breakthrough again, taking his third wicket of the innings. Pujara misses a straight one and is punished, with the ball crashing into the stumps.
IND 105-3Kohli is the new batsman and he starts with a couple of solid strokes for no runs. Big pressure on Tendulkar to deliver a score.
IND 107-3Lyon continues his spell, allowing Tendulkar a single early in the over. Kohli is off strike with a nudge to square leg and it's a decent over from Lyon.
IND 109-3Pattinson is taken for a single to third man by Kohli. Warner does superbly at point to get a hand on a powerful cut shot from Tendulkar, who earns a single for his trouble.
IND 113-3A thick edge from Tendulkar earns two runs on the off-side and a punch down the ground sees the little master reach his half century, prompting a huge cheer from the Chennai crowd.
IND 117-3Siddle is back for a new spell and he causes Kohli some trouble with a couple of fierce deliveries. However, Kohli shows his class later in the over by whipping the ball through mid-wicket for four runs.
IND 124-3Tendulkar is off strike with a single and Kohli has another four with a thick edge to the third man boundary rope. The Indian duo trade singles midway through the over, seven scored from it.
IND 129-3A single is taken early in Siddle's over by Tendulkar, bringing Kohli on strike and the number five superbly punches the ball past mid-on for another boundary.
IND 135-3Henriques is on for a new spell and begins with three dot balls. Tendulkar ruins the good start by flicking the ball through the leg-side for four runs before adding a single to third man. Kohli opens the face to collect another run, six from the over. Time for a drinks break.
IND 136-3Siddle is back for a new spell after the break and finds a great line outside off stump. Kohli is happy to leave the ball, knowing that the lack of swing is playing into his hands. There's a single from the final ball of the over to spoil a potential maiden.
IND 136-3Henriques looks a tidy bowler but certainly doesn't have the same pace as his teammates in the attack. A good straight over keeps Kohli pinned to the crease and it's a maiden.
IND 137-3Tendulkar pushes the ball into the gap and Warner does superbly to restrict the batsman to just a single. It's a good over from Siddle and Australia have improved since drinks.
IND 138-3Henriques strays slightly and Tendulkar is able to collect a single to fine leg. The seamer adjusts well though and it's just the one run from the over.
IND 148-3Clarke decides it's time for a change and he brings his own brand of left-arm spin into the attack. Tendulkar isn't ready but Clarke bowls straight at the stumps anyway, resulting in a dead ball. The next ball explodes off the pitch and hits Tendulkar on the glove but he's safe. A single is taken, bringing Kohli on strike and he sends the ball to the rope at cover with an excellent drive. Another drive follows later in the over and Kohli has four more to his name. One more single comes for Kohli and it's 10 from the over.
IND 150-3Kohli takes a single at the start of a new over from Henriques before Tendulkar is forced to react quickly to dig a full delivery out. Another singles is scored but it's a good over from Henriques.
IND 154-3Clarke continues and strays onto the pads, allowing Tendulkar to collect two on the leg-side. A full toss follows later in the over and Tendulkar whips the ball through mid-wicket for two more.
IND 155-3Kohli nudges the ball to square leg for a single. This partnership is now worth fifty. Tendulkar has to make a big adjustment when a delivery from Henriques keeps very low. Good spell from the seamer but Australia could do with another wicket before stumps.
IND 156-3Starc is back for a new spell but he's still bowling round the wicket, which hasn't offered much for him so far today. Kohli drives through the covers for a single but that's the only blemish on an otherwise solid return from Starc.
IND 159-3Lyon comes into the attack again but he can't prevent Kohli from getting off strike at the start of the over. Tendulkar pushes the ball onto the leg-side for a single before Kohli flicks the ball to fine leg for another. Six overs left in the day.
IND 160-3Starc continues, gifting an extra through the form of a wide. Kohli takes advantage of some more width at the end of the over to collect a single, keeping the strike in the process.
IND 166-3Superb from Kohli as he latches onto a full delivery from Lyon and drives the ball for four straight down the ground. Two more runs come in the over and India are cruising to the close of play.
IND 173-3Kohli pushes the ball through the off-side for two runs before taking a single to bring Tendulkar on strike. Starc delivers a leg stump half volley and Tendulkar won't miss out there, clipping the ball to the fine leg rope for four.
IND 179-3The Indian duo trade singles early in Lyon's over and Kohli moves closer to a half century with a powerful drive through a vacant area on the off-side for four. Six scored in the over, great batting from this pair.
IND 179-3Starc is producing one final burst before the close of play but his effort is not bringing any reward. It's a maiden and there's just one over left today.
IND 182-3Kohli chips the ball to long-on for a single and Tendulkar adds another with a soft push behind square on the leg-side. It's fifty for Kohli as he nudges the ball through square-leg for another run.
IND 182-3Close of play: No drama in the final over of the day and India have reached stumps in a very healthy position. The hosts were in trouble at 12-2 but Tendulkar has shown his class this evening to lead his team to safety.
11.14amTomorrow promises to be an exciting day and much will depend on how this partnership progresses in the morning. Join me at 3.30am for coverage on day three. Goodbye everyone.