Following Michael Clarke's surprise declaration on 237 for nine on Saturday, the hosts began with five runs on the board in Hyderabad and added just 49 more for the loss of Sehwag.
After underperforming with the bat, Australia knew they needed to make early inroads and their hopes were raised when Sehwag fended behind off Peter Siddle in the fifth over of the day.
India did not seem unduly worried, though, as Sehwag's opening partner Murali Vijay drove James Pattinson for four in the next over and Cheteshwar Pujara clipped his first ball to the boundary.
Thereafter India dug in and it was 18 overs until Vijay struck the next boundary, a lofted drive off Xavier Doherty.
Although Doherty did beat the bat on occasion, the closest Australia came to another breakthrough was a run-out appeal. Pujara was comfortably home, though, and he reached lunch on 15 not out off 55 balls. Vijay had 29 off 106.