Nathan Lyon grabbed eight wickets as India were bundled for 163 in 60.3 overs in the second innings on day two of the third Test against Australia here on Thursday.

The hosts are staring at a big defeat as Steve Smith's side has been set a target of just 76 runs to win the Test and secure a place in the World Test Championship (WTC) final.

Lyon spun a web around India batters, returning figures of 23.3-1-64-8.

Cheteshwar Pujara batted resolutely but fell after making 59 runs. The veteran batter's departure, with Smith taking a blinder of a catch at leg slip off the bowling of Lyon, virtually ended India's resistance.

Umesh Yadav lasted just two balls, caught by Cameron Green in the deep for a duck as India's batting went down without a whimper.

India are leading the series 2-0 having won in Nagpur and New Delhi.

Brief Scores: India 109 and 163 in 60.3 overs (Cheteshwar Pujara 59; Nathan Lyon 8/64) in 60.3 overs.

Australia 1st innings: 197 all out in 76.3 overs.

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