I ran the following commands in terminal
sudo -s
chmod 754 /
Now the system does not start in normal mode. However, I can luckily run root shell prompt from recovery mode. As I have a lot of useful data, so I don't want to reinstall the OS. I need to restore the default user permissions through root shell prompt.
If you are on recovery root prompt, please do chmod 755 /
. The system needed the execute bit for all users to boot correctly.