Sharma removed Watson with his first delivery after the bulky Australian had dominated an 87-run opening partnership with a struggling Simon Katich (24 not out).

Sharma then had Ricky Ponting (4) caught at square leg off his fifth ball and Michael Clarke dismissed with the next, though umpire Billy Bowden ruled the latter a no-ball after consulting the third umpire. The paceman, who missed much of the first innings with a troubled knee, struck again in the next over when he sent down a sharp bouncer and an evasive Clarke (4) could only glove it to fall caught behind.

Katich and the scoreless Mike Hussey were in the crease at the break as Australia stretched their overall lead to 123 runs. Watson followed his first innings century with a brisk 56 before dragging a Sharma delivery onto his stumps.