Smith finished unbeaten on 72 from 130 balls, with the help of nine fours, to keep the runs coming after the dismissal of Warner.
Warner had dominated the first two sessions as he hammered 145 from 163 balls with 19 fours. Captain Clarke stroked 60 before he was forced to retire with a back injury and his further participation in the match seems doubtful.
Ishant was India’s best bowler on Day 1 with one for 56 in 20 overs while his pace partners Shami (2-83) and Aaron (2-95) bagged a couple of wickets each but went for plenty of boundaries.
Karn Sharma had a tough baptism to Test cricket but he claimed the big wicket of Warner for figures of one for 89 in 23 overs.
With Clarke unlikely to bat, Australia are as good as seven wickets down and India would be looking to wrap up the tail soon on Day 2.