"Host name lookup failed" means that the host you are trying to send mail to does not exist. (You have to pass an option to mailq to see the full, untruncated error message.)
The mail is submitted, but Sendmail is sitting on it, because the mail routing is wrong.
Basically, when you send mail to the Internet, a DNS lookup against the receiving domain's "MX" record takes place. This instructs your MTA to contact a particular host which handles mail (Mail eXchanger) for this domain. This indirection exists so that large domains can centralize and manage their email infrastructure on one server, or a small set of servers; it also enables a fallback, because a domain's MX record can include one or more secondary entries in case the primary is down.
The MX for blr.xyz.com points to a host which does not exist, or blr.xyz.com simply does not exist in the DNS. Fix the DNS problem(s), and/or send the email to a domain which exists in reality, and has working email. (Try a sacrificial Hotmail or Gmail account if you just want to check that it works.) Or simply don't use a domain name, which will send the message to a local account (on most architectures I have seen; but some are set up to send even mail without a domain name to an upstream "smarthost").
... The log files reveal the real domain name you are using, which is not xyz.com, and it does indeed seems to have DNS issues.
vnix$ host -t ns mysym.com
Host mysym.com not found: 2(SERVFAIL)
I tried to look up the NS (name server) record for this domain, and got nothing. I cannot proceed.
If this is a domain name you use on your intranet, and you don't even mean to reach the "real" mysym.com, then your name server set-up is probably screwed; see if your /etc/resolv.conf is different than on other machines in your neighborhood.
For comparison, here's unix.com:
vnix$ host -t ns unix.com
unix.com name server ns2.sitelutions.com.
unix.com name server ns3.sitelutions.com.
unix.com name server ns4.sitelutions.com.
unix.com name server ns5.sitelutions.com.
unix.com name server ns1.sitelutions.com.
vnix$ host -t mx unix.com # basically gets the answer from one of the NS hosts listed above
unix.com mail is handled by 10 ASPMX3.GOOGLEMAIL.com.
unix.com mail is handled by 10 ASPMX4.GOOGLEMAIL.com.
unix.com mail is handled by 10 ASPMX5.GOOGLEMAIL.com.
unix.com mail is handled by 1 ASPMX.L.GOOGLE.com.
unix.com mail is handled by 5 ALT1.ASPMX.L.GOOGLE.com.
unix.com mail is handled by 5 ALT2.ASPMX.L.GOOGLE.com.
unix.com mail is handled by 10 ASPMX2.GOOGLEMAIL.com.
This says that DNS for unix.com is handled by sitesolutions.com, and mail for unix.com is handled by ASMPX.L.GOOGLE.com -- the others are secondary fallback hosts in case the primary cannot be reached. This sort of set-up is atypical, although an increasing number of domains are moving to Googlemail for their email handling, so this might be becoming the norm actually. Anyway, this aside was just for educational purposes.
Sorry for the long delay; I was having the flu for a few days.