After being up two games to nil, Ghosal lost the next three to concede the mens' singles squash gold to Kuwait's Abdullah Almezayen.
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India won just two bronze medals on the second day, but were assured of at least a silver by squash star Saurav Ghosal and two more bronze in Wushu.
On day four, shooters are expected to once again rule India's medals tally.
Abhinav Bindra begins his Incheon campaign and is expected to be among the medals in the 10m Air Rifle event
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