I have tried installing KVM according to the guidelines provided on Ubuntu wiki but when I open Virtual Machine Manager it says that,
'Warning: KVM is not available. This may mean the KVM package is not installed, or the KVM kernel modules are not loaded. Your virtual machines may perform poorly.'
I have hardware virtulization enabled in my BIOS settings. Here, is a output of sudo /usr/sbin/kvm-ok:
INFO: /dev/kvm does not exist HINT: sudo modprobe kvm_intel modprobe: FATAL: Module msr not found.
Also, output of sudo modprobe kvm_intel is as follows:
modprobe: FATAL: Module kvm_intel not found.
I was running Ubuntu 14.04 with recent kernel version. But it eventually turned out that KVM works well with Ubuntu kernel only. So I tried using 3.13.0-24-generic which comes by default with Ubuntu 14.04 and this solved my problem. KVM is working fine for me now.