Sindhu, the reigning world champion and two-time Olympic medallist, could neither match the pace nor breach the defence of the world number six Korean, losing 16-21 12-21 in the 40-minute lop-sided clash.
The double Olympic medallist goes down meekly to South Korea's An Seyoung 16-21, 12-21 in the summit clash.
It will be Sindhu's third final appearance in the season-ending tournament. She had won the title in 2018 to become the only Indian to achieve the feat.
Sindhu finished in the second position in group A, behind Chochuwong and her opponent of the semifinal stage will be decided in a draw later in the day.
Axelsen was rewarded for his extraordinary run starting from the Barcelona Spain Masters in February 2020. The Dane made 10 finals in 11 individual tournaments, winning seven of those, including gold at the Tokyo Games.
The former world no. 1 Indian was no match for Lee, the reigning All England champion, going down 19-21 14-21 in 37 minutes to end his campaign.
Double Olympic medallist Sindhu outplayed World No 23 Yvonne Li 21-10, 21-13 in 31 minutes.
The women's doubles pair of Ashwini Ponnappa and N Sikki Reddy suffered their second successive loss in the event, going down fighting 19-21 20-22 to Bulgaria's Gabriela Stoeva and Stefani Stoeva
Satwik's recurring knee pain aggravated and the duo decided to pull out keeping in mind the upcoming BWF World Championships.
Sindhu looked in great control as she opened up a 5-2 lead and though Line made it 7-6, the Indian quickly reeled off 10 straight points to march to 16-8 and seal the opening game comfortably.
India's top shuttler PV Sindhu prevailed Denmark's Line Christophersen in straight sets 21-14, 21-16 in the BWF World Tour Finals 2021 Women's Singles group A match in Bali.
Srikanth beat France's Toma Junior Popov 21-14, 21-16 in 42 minutes in his opening match of group B.
It will be the best ever representation for India at the year-end tournament with as many as seven of them qualifying for the USD 1,50,000 event.
Satwik and Chirag had finished at the semifinals of the Indonesia Open last week but made the cut after Japanese pairing of Akira Koga and Taichi Saito also lost in the last four at the Super 1000 tournament.
The 20-year-old from Almora has enjoyed an impressive run on the BWF world tour and is currently ranked fifth in the World Tour rankings.
The USD 400,000 India Open, which was supposed to be one of the qualifiers for the Tokyo Olympics, was scheduled to be held from May 11 to 16 but was postponed in April due to rising COVID cases in the national capital
Sindhu, the Olympic silver medallist, notched up a 21-18 21-15 win over world number 13 Pornpawee Chochuwong in her third and final match after suffering defeats in the first two days.
The former world number one, after his three consecutive losses, finished last in Group B.
Kidambi lost 21-19, 9-21, 19-21 to Wang Tzu Wei of Chinese Taipei, Sindhu suffered an 18-21, 13-21 loss to Thailand's Ratchanok Intanon.
Srikanth squandered an opening game advantage, losing 21-15 16-21 18-21 to world number three Anders Antonsen of Denmark in a gruelling 77-minute contest.
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