Top seed Saina, who had a 2-0 record against Tee Jing Yi ahead of the match, notched up a 21-10, 19-21, 21-19 win against the World No. 34 Malaysian.
However, the two-time bronze medalist at World Championship Sindhu blew away a first game lead and a 13-7 advantage in the second game to lose 21-18, 18-21, 16-21 to Shixian Wang of China in a match that lasted an hour and 28 minutes.
In the first game, Saina didn't give any chance to Jing in the opening game as she dominated proceedings from the start to pocket the first game.
However, Jing came back strongly in the second match as she fought back from 5-8 and 8-11 deficit to eventually roar back into the contest.
In the decider, Jing had opened up a 6-2 lead early on but Saina drew parity at 8-8 and then got engaged in a tough battle with the Malaysian who held the lead at 15-13 for a brief time before Saina stamped her authority and zoomed ahead.
In another pre-quarter final women's singles match, Sindhu's 4-3 record against Shixian meant little today as despite holding the edge early on in the match, she could not cross the finishing line.
Shixian enjoyed a 5-1 lead in the opening game but Sindhu caught up at 8-8. The Chinese once again broke off and led 16-12 but the Indian reeled off six points to move to 20-17 before closing the opening game.

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