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There can be numerous reasons. Are you sending mails to outside mail domains directly or though a company gateway? In the first case your server may not have a public mail exchange (MX) DNS records, in the 2nd case your server might not be accepted for relay.
I suggest you analyze the returned emails to find out how your mails are being routed. The error message you have shown is useless.
I had added only the hostname and ip of exchange in server. As suggest will DNS records and check.
And i did not get any returned mail . I had checked in queue also.
The DNS entries are added in resolv.conf file but still facing the issue . It is giving the same error.
Like I previously outlined there can be numerous reasons. The error message you are providing is absolutely useless. You will need to find out how your emails are being routed, i.e. sent to the outside directly or via another smtp gateway inside your network. Check your sendmail "smarthost" configuration, IP firewall and contact the mail administrator of your company if you use another mail gateway for relay. If you are allowed to send emails to the Internet cloud directly then you're server should be registered by a public MX DNS record. Google or Hotmail doesn't care what DNS you have configured locally. You don't add DNS entries into resolv.conf, only which servers to contact for you own DNS resolving. You may need to contact your Internet service provider or configure the DNS server that represents your DNS authority and address space to the worldwide Internet.