SATA drivers for XP are usually, as far as I know, provided by motherboard manufacturer / chipset manufacturer / other than Microsoft. I ran XP with SATA, and it worked just fine, it was a MSI mobo, can't remember the provider of SATA drivers. But many many people have written that it needs to be run in IDE mode - one of these typical generation gaps.
And, avinashrawat, do zero / low format your disk. That clears your disk to the original state, as it writes it full with zeroes = no information found. The best way to do it is to get disk tools from your HDD manufacturer. It can also be done by, say, Aomei,
http://www.disk-partition.com/help/clear-disk.html, by deleting all partitions, then re-partitioning. I always recommend to have Windows system in one part, and own files in another, or even another disk. That way you can re-install Windows without touching your own files.
You do know that all XP support will end April, next year? It's obsolete...