Carolina Marin beats Saina to win All England Badminton Championship
The Spanish played beat her Indian opponent 16-21, 21-14, 21-7.
Despite making a brilliant start with a win in the first set, Nehwal lost momentum in the remaining sets and suffered a crushing defeat in the match.
She had already scripted history by becoming the first Indian woman player to reach the final of the tournament.
Indian badminton player Jwala Gutta tweeted: "No matter the loss..saina nehwal achieved a great feat..tremendous performance by an Indian..all credits to her."
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