Shane Watson returned from injury to captain Australia into the finals of the one-day cricket series with an 87-run win over India at the SCG on Sunday.

Watson, who had been sidelined since November due to hamstring and calf injuries, stepped back into the international game as captain after Michael Clarke was ruled out with back soreness.

And while the burly allrounder failed with the bat he took 2-9 off five overs as the Indians were dismissed for 165 in reply to Australia’s 9-252.

The bonus-point win moves Australia to 19 points on the tri-series ladder with one game to play, four ahead of second-placed Sri Lanka.

India must now claim a bonus point win over Sri Lanka in Hobart on Tuesday, and hope Sri Lanka lose to Australia in Melbourne on Friday, to have any hope of making the finals.

David Warner (68) top-scored in Australia’s innings, with Matthew Wade (56) and David Hussey (54) also scoring half-centuries.

Hussey’s knock featured the game’s biggest talking point after he was given not out for handling the ball when on 17, a decision that angered Indian skipper MS Dhoni.

The Victorian used his right hand to block a throw from Suresh Raina prompting the Indians to appeal but the umpires decided Hussey’s actions were an attempt to avoid injury, rather than shield the stumps.

India’s innings began badly with Virender Sehwag (5) brilliantly caught and bowled by Ben Hilfenhaus (2-50) before Warner ran out Sachin Tendulkar (14) in what was most likely be the great batsman’s final innings at the SCG.

When Watson came on and removed Virat Kohli (21) and Raina (8) in quick succession, the visitors’ resistance had crumbled.

Irfan Pathan smashed two big sixes in his entertaining 22 but Xavier Doherty (2-26) and Brett Lee (1-26) wrapped up the tail to complete the victory with 10 overs to spare.