Not sure if it is only me or there are other windows developers who faced this problem where their Default website suddenly stopped working. After a bit of Google search I found the solution and thought of writing a blog about the same so that others can refer it too.
In my case the whole problem was because of Skype Messenger. There is a configuration setting in Skype which enables the messenger to use port 80 and 443 as alternative for incoming connections.
In order to access this setting we need to go to:
Tools –> Options –> Advanced –> Connection
We need to uncheck this option and with that everything should work fine.
I hope people might find this information useful.