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Olympic silver medallist Sindhu, who had won the event in 2017, blew four game points in the opening game to go down fighting 21-23, 18-21 to China's He Bingjiao.
Sindhu, who reached the finals in the last two editions and won the title in 2017, brushed aside fellow Indian Mugdha Agrey 21-8, 21-13 in women's singles.
The win in the BWF World Tour Finals means a lot for Sindhu and now with the monkey off her back, the Hyderabadi can look forward to greater glory in the new year.
Sameer Verama squandered a match point to go down 21-12, 20-22, 17-21 to All England champion Shi Yuqi in the men's singles semifinals.
It was a day when India counted the silvers, a total of five, even though there was no gold in the tally.
World No. 10 Saina became the first Indian woman shuttler to make it to the last-four stage of the Games.
The schedule of Indian contingent on the eighth day of the Asian Games.
The presence of Sindhu and Saina in the women’s section and Srikanth in the men’s competition gives India a good chance to improve on its tally.
Satwiksairaj Rankireddy and Ashwini Ponnappa pulled off a stunning victory over the Malaysian world No.7 combination of Goh Soon Huat and Shevon Jemie Lai to progress to the quarterfinals.