Five-time world champion Lin Dan also made a stunning exit from the tournament as world number 10 Tommy Sugiarto beat him 21-17 15-21 21-17 in the men's singles at the Siri Fort Sports Complex here.
Olympic bronze medallist, Saina sailed past Indonesia's Hana Ramadhini 21-15 21-12 in the women's singles competition to stay just one win away from becoming the first Indian woman to achieve the world number one ranking.
In men's singles, world number four Srikanth outwitted Japan's Takuma Ueda 21-15 23-25 21-18 in a hard-fought battle that lasted an hour an 19 minutes.
Prannoy, who had sent the top seed and world number two Jan Jorgensen of Denmark packing, also conjured up hopes of another upset before falling short against world number six Viktor Axelsen 21-16 9-21 18-21.
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Commonwealth Games bronze medallist, Guru had started the proceedings for India and despite playing a compact game initially, he too ran out of ideas in the end to go down 21-15 18-21 13-21 to China's Xue Song in a match that lasted over an hour.
Saina led 10-6 early on but Hana blasted off four straight points to catch up with the Indian. However, Saina slowly increased the gap with her rival to eventually win the first game.