The reason when you connect the monitor and it goes black is because you must use the graphics drivers provided by the system manufacturer since you are using switchable graphics from the Intel HD 4000 to the AMD 7670 graphics card.
You can contact your system manufacturer for drivers at the link below:
Also for more information regarding switchable graphics please go to the following URL:
Thanks for the reply.
I reported my problem to HP. They provided me the drivers which I already tried.
Later, HP guy came to my place and suggested to replace the system board suspecting a hardware fault.
This was insane as its a brand new laptop, to confirm the hardware integrity I connected the laptop with a HDMI cable which worked perfectly, audio/video was transferred to HDMI TV.
I believe this issue is specific to DVI connection. HP doesnt have anything on this for me.
Dont you think it could be a bug in intel driver for 4000HD graphic card or windows 8?