The 29-year-old Olympic bronze medallist and World No 9 went down 16-21, 23-21, 4-21 to her 19-year-old opponent in the women's singles match.
20-year-old Malvika Bansod, ranked 111th, took 34 minutes to register a straight games victory against former World No 1 Saina Nehwal.
Rankireddy and Shetty, who created history on Sunday by becoming the first Indian men's doubles pair to win a BWF Super 500 tournament, are placed ninth in the men's doubles rankings issued on Tuesday.
Saina Nehwal struggled her way to the second round of the French Super Series badminton tournament after defeating German Juliane Schenk in a thrilling first-round match in Paris.
Saina Nehwal remained static at second position while Kidambi Srikanth dropped a place to be at ninth spot in the world badminton rankings released on Thursday.
Indian shuttler HS Prannoy grabbed his career-best world number 12 spot.
The 19-year-old Indian came up with a splendid display but it was not enough to prevent him doing down 17-21, 21-16, 17-21 after 55 minutes.
India's Lakshya Sen on Thursday progressed to the quarter-finals of the All England Badminton Championships in Birmingham, while HS Prannoy crashed out in the second round.
Commonwealth Games bronze medallists Ashwini Ponnappa and N Sikki Reddy scored a stunning straight games victory over world No. 18 Li Wenmei and Zheng Yu to make it to the second round in the women's doubles at the US $350,000 India Open, in Delhi, on Tuesday.
Indian shuttlers had a good day in office, with as many as four reaching the main draw of women's singles after winning their respective qualifying round matches at the Yonex Sunrise Indian Open, in Hyderabad on Tuesday. Aparna Balan, Ashwini Ponnappa, Arundhati Pantawane and Chitralekha progressed to the main draw.
Srikanth lost to Ireland's unseeded player Nguyen Nhat 11-21, 21-15, 12-21
Following her bronze-medal finish at the recently-concluded World badminton Championships, India's top shuttler P V Sindhu has re-entered the top-10 in the latest Badminton World Federation (BWF) rankings, released on Thursday.
The absence of double Olympic medallist P V Sindhu, London Games bronze medallist Saina Nehwal and men's doubles pair of Chirag Shetty and Satwiksairaj Rankireddy also hurt India's prospect as the team cut a sorry figure at the team-tournament.
Saina Nehwal, who won a bronze at the World Championship, jumped four rungs to be placed at the 12th spot, while Kidambi Srikanth also improved two positions in the latest BWF World ranking.
An Indian team which is a nice little blend of youth and experience, will have to punch above its weight in what's going to be an arduous challenge in the Sudirman Cup mixed team championships here on Sunday.
Saina dropped two spots to third in the women's singles list, and is placed below Spaniard Carolina Marin (80752), who rose a rung following her Australian Open title triumph.
Rejuvenated after a month-long break from a hectic BWF schedule, Sindhu and Srikanth prevailed over Japanese shuttlers Aya Ohori and Kenta Nishimoto in women's and men's singles respectively.
Indian shuttlers had a bad day in office as Ajay Jayaram and H S Prannoy failed to cross the opening hurdle at the prestigious All England Championship in Birmingham on Wednesday.
Sindhu, who is currently competing at the French Open in Paris, jumped one rung to stay one spot behind Chinese Taipei's Tai Tzu Ying, who continues to dominate the rankings.
Satwik-Chirag dished out a gritty performance to outwit the local favourites a
Riding on her title-triumph at the Malaysia Masters Grand Prix Gold, India's P V Sindhu, on Thursday, jumped one place to be just outside the top 10 in the latest BWF ranking.
Sen won his second round contest 21-17, 21-10, taking 72 minutes to complete the formality.
Expectations from the Indian male shuttlers will also be high, given their exploits in recent months.
It's a big day for India today as medals will be few good ties away from the athletes at the Commonwealth Games on Sunday.
US Open champion Prannoy, who had reached a career-best World No 11 ranking last week, improved a place further to grab the 10th spot. He has been rewarded for his consistent performance this season where he reached the semi-finals at the Indonesia Open and French Open.
India's shuttlers enjoyed a mixed day at the Australian Open Super Series as Saina Nehwal, Kidambi Srikanth, P V Sindhu and B Sai Praneeth progressed to the second round but four others were knocked out in the first round itself, in Sydney, on Wednesday.
Sindhu had resumed training last month under the supervision of Korean coach Park Tae-Sang after the Sports Authority of India
If Saina manages to go past Okuhara, the Indian might run into fourth seed Carolina Marin, who is placed in her half of the draw.
Srikanth had last reached the quarterfinals at the Singapore Open in April.
Kashyap, ranked 25 in the world, ran out of steam after a decent start against seventh seed Axelsen and went down 13-21, 19-21
PV Sindhu dominated from start to finish and smashed her way into the second round of the prestigious All England Badminton Championships, in Birmingham, on Wednesday.
Srikanth fought hard for 55 minutes against second seed Chou Tien Chen of Chinese Taipei
Saina lost 15-21, 21-23 in the women's singles match that lasted 37 minutes to crash out
Olympic medallists Saina Nehwal and PV Sindhu sailed into the women's singles quarter-finals with straight-game wins but it was curtains for Kidambi Srikanth at the BWF Badminton World Championships, in Nanjing, China on Thursday.
Olympic bronze medal winning shuttler Saina Nehwal has been handed a relatively easy draw in the women's singles section at the upcoming World Badminton Championships, scheduled to be held in Guangzhou from August 5 to 11.
P V Sindhu stormed into the third round of the World Badminton Championships with a straight-games victory over Olga Golovanova of Russia, in Copenhagen, on Wednesday.
Former World No 1 Srikanth, who has not won a title at the BWF World Tour in the last 22 months, staved off a spirited a challenge from Ireland's Nhat Nguyen, winning 17-21, 21-16, 21-6 in a match that lasted an hour and six minutes to join Praneeth and Prannoy in the second round.
Srikanth made a good start in the second game, moving to 7-3 advantage but Lee once again turned the tables, jumping to 13-9 and kept his nose ahead to eventually shut the doors on the Indian.
'I don't think we have ever had so many top players either in singles or doubles,' says badminton legend Prakash Padukone.
Despite clinching the Syed Modi Grand Prix Gold men's title, India's K Srikanth remained static at World No. 9 while P V Sindhu dropped a place to be No.12 in the latest Badminton World Federation rankings released on Thursday. The women's singles' ranking list had Saina Nehwal holding on to her World No. 2. place despite skipping the Lucknow event, where she was the defending champion. Runners-up in men's doubles event at Syed Modi, Indian pair of Pranaav Jerry Chopra and Akshay Dewalkar improved two places to be at World No. 34, while Manu Attri and B Sumeeth Reddy, who lost in the opening round at Lucknow, dropped two places to be at No. 20. A quarterfinal loss at Syed Modi event also had an adverse affect on P Kashyap as he slipped to World No. 15, while H S Prannoy slumped seven places to be at 27th spot. Ajay Jayaram was static at No. 25.
