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The fifth-seeded Saina lost to unseeded Kjaersfeldt 13-21 21-17 15-21 in a hard-fought 47-minute contest.
World number 18 Saina had a 4-0 head-to-head record against the number 29 Dane before Wednesday’s match.
With Saina’s defeat, India’s campaign came to an end in the BWF World Tour Super 300 event.
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In the men’s singles, the trio of Kidambi Srikanth, Sameer Verma, and H S Prannoy, too, faltered in the first round.
Indian shuttlers thus continued their poor run after making early exits in Malaysia and Indonesia Masters earlier this month.
Verma lost to Malaysia’s Lee Zii Jia 16-21 15-21 in a 39-minute men’s singles match. The story went on similar lines for the fifth-seeded Srikanth, who went down to Shesar Hiren Rhustavito of Indonesia 21-12 14-21 12-21, in a match that lasted 48 minutes.
This was Srikanth’s third consecutive first-round exit this season.
It was curtains for Prannoy too. He lost 17-21 22-20 19-21 to Malaysia’s Liew Daren.