The reason for My Wi-Fi Dashboard not detecting your connection is because you have a "public network" profile on your connection. Windows doesn't allow internet sharing when you are connected to a public network. Change your connection to "Home network" and Windows will allow network and internet sharing with that profile. Your Wi-Fi dashboard should now be able to see that you have internet connection and be able to create a hotspot.
Sujesh, it will be necessary to connect via wireless LAN and disconnect your wired connection for Intel® My WiFi Dashboard to be able to share your internet connection.