Dear Abhishek,
if she is not using the port P1.0 and P1.1 then there is no need to put pull up to these port pins.

Dear Shivani,
The hex file is OK. So find out the problem in hardware. And it is very difficult to locate the problem just by guessing. But still some suggestions.

Put a 4K7 pullup resistor for P3.2 (As suggested by Kai- 2K2)

Try to add up a little more code and see the variations on output ports.

Use 1sec delay and output 0X55h and 0XAAh alternately on port 1 for 10 to 15 times, and connect LEDs on putput port 1 so as to know something is happening inside the uC.

Check whether your crystal is functioning or not. If you don't have a scope, then you can check it by multimeter too. It should show the voltage 2.5V on XTAL1 and 1.5 to 2.5V on XTAL2.

Check your switch. Sometimes it may be working, sometimes not. This happens with faulty switches.

Add something more instead of just making the port P1 low. Like put a counter and output the sequence from 00 to 0X0Fh with a delay of 1 sec or so.
I always used to do such counter type of tricks when I started using uC.

And read my previous post. Few tips from that will also help you. (Atleast in software writting)

Use LEDs to monitor the status of uC. For example before starting of any function blink one (say RED) LED on any port pin and blink another (say GREEN) after finishing that function. Thus you can observe the bevahiour of your uC. If nothing happens then there is some problem with your RESET or CLK.

The above suggestions are based on the assumption that you have programmed the chip properly and wired your uC like this.
http://www.iguanalabs.com/1st2051.htm

You can check your flash by simply reading it back and comparing it with the one you loaded. Or you can disassemble that code and check back.

Last but not the least check for any loose connections :)

Regards
Sarang