Hi, Revanth.
You can check the owner's manual for your TV, but odds are the issue is that the TV will not output anything but a stereo signal from the optical output if the input is HDMI. It should output Dolby Digital if you're using the internal TV tuner, but a lot of TVs downmix audio from HDMI inputs to stereo for output from the optical jack.
The simplest connection is probably to connect the HD media player to the receiver using an HDMI input, then connect the HDMI output from the receiver to the TV. You could also keep it connected like you do, but connect the optical output on the HD media player to the receiver (if it has such an output), and you might need to set the player up to output audio over the optical connection.