Cape Town: India lost valuable ground in the third and final cricket Test after allowing South Africa to fight their way back into the series-decider with a commendable all-round show here today.

Captain Graeme Smith led the South African challenge from the front with an unbeaten 76 as the hosts made a strong recovery to be placed at 144 for one at close on second day in reply to India's 414 in the first innings.

Smith also put on 130 runs for the unbroken second wicket stand with Hashim Amla (50) to seize back the initiative from the visitors.

The South Africans lost an early wicket when AB de Villiers (1) inside edged S Sreesanth behind the stumps but thereafter the Proteas came back strong at the Indians to throw open the match.

India did appear rattled by the aggression of the hosts and there were a number of misfields which compounded the rather poor line bowled by the bowlers.

It more or less completed a poor day for the Indians who resumed at 253 for 3 and added only 161 runs while losing the rest of the batsmen.

Despite half centuries from Sachin Tendulkar (60) and Sourav Ganguly (64), and a belligerent 40 from demoted Virender Sehwag, India suffered a collapse and lost their final five wickets for 19 runs.