hey amod234 - I live in Sydney, Australia. I have loads of Indian friends in both Sydney and Melbourne. From what I've heard, seen, experienced and read I would say the following with regards to the racism and attacks issue, yes it is happening, but it's no where as bad as the media portrays it to be. The violence of these senseless attacks has caused a massive media stir, but on a positive note it has brought a great deal of awareness to the issue as well. Some of my Indian colleagues who are attending AGSM or MGSM have been contacted directly by the universities to ensure that they are safe and not experiencing any cultural issues. Having said that, most of these are Indian Australians who have been here for 20+ years.
I would not let these things discourage you from coming to study in Australia. Both Sydney and Melbourne are beautiful places to study, live and work. I can't speak for MBS because I'm not sure where it is exactly but both AGSM, MGSM are based pretty central to the city so in terms of campus locations they are completely safe. If you venture out to unsafe areas by yourself at night yes you might attract the wrong attention, but this is no different to London, New York or any major city in the world.
If it is feasible costwise, I would suggest visitting and see if you like it. I think you'll find from visiting that Sydney and Melbourne are both quite diverse and that chances are you woudln't have any issues.
ps. there's a forum for Australians so feel free to post your questions there maybe there's others that can provide a different perspective:calling-all-australia-new-zealand-candidates-85194.html