Openers David Warner (23) and Matt Renshaw (15) were at the crease with the visitors trailing India by 149 runs in the first innings at Bangalore s M Chinnaswamy Stadium.
Earlier off-spinner Nathan Lyon claimed career-best figures of 8-50 to help bowl out India, who elected to bat first, for 189 in the final session.
Opener Lokesh Rahul top-scored with 90. Earlier, the hosts were dismissed in the final session after electing to bat first. Steve Smith s Australia lead the four-match series by 1-0 as they won the first Test.
Special coverage on China's Two Party Sessions by The Daily Mail - People's Daily