Sehwag was brilliantly caught by Mike Hussey above his head in the gully off Ben Hilfenhaus for four to set the tourists back on their heels in their pursuit of 292 runs to win the first of four Test matches.

India dismissed Australia for 240 and went to lunch at 24 for one with  Gautam Gambhir on six and Rahul Dravid not out five.

South Africa were the last team to achieve a higher fourth-innings target of 297 for four in beating Australia at the MCG in 1953.

India struggled to mop up the Australian second innings with the home team adding 61 runs for their last two wickets off 16.3 overs to exasperate the tourists' bowlers.

Yet again no batsman has reached a century in the low-scoring Melbourne Test after Mike Hussey was dismissed for 89.

James Pattinson remained unbeaten 37 not out as he put on 43 runs for the  last wicket before Ben Hilfenhaus was the last man out for 14.

Hussey had some luck along the way after South African umpire Marais Erasmus turned down a loud leg before wicket appeal off Umesh Yadav on 80, which replays showed was out.

Then in Yadav's next over India appealed for a catch behind again off Yadav only for Erasmus to again turn it down.

Hussey was reprieved for a second time on 80 after the "Hot Spot" infrared technology detected a faint edge off his bat before being caught by wicketkeeper M.S. Dhoni.

India have refused to play under the Decision Review System (DRS) in this series.

But Hussey's luck ran out in the 67th over when Zaheer Khan enticed an edge off an outswinger for Dhoni to clean up.

The senior Australian batsman, who took the heat off his place in the team, faced 151 balls and hit nine fours in his determined knock to rescue Australia from a parlous 27 for four.

Pattinson had a "life" on 19 when he skied Yadav and Zaheer Khan running in from fine leg spilled the chance and he made India pay with his highest Test score.