ORA-01652 Unable to extend temp segment by in tablespace

You don't need to create a new datafile; you can extend your existing tablespace data files.

Execute the following to determine the filename for the existing tablespace:

  SELECT * FROM DBA_DATA_FILES;

Then extend the size of the datafile as follows (replace the filename with the one from the previous query):

  ALTER DATABASE DATAFILE 'D:\ORACLEXE\ORADATA\XE\SYSTEM.DBF' RESIZE 2048M; 

Create a new datafile by running the following command:

alter tablespace TABLE_SPACE_NAME add datafile 'D:\oracle\Oradata\TEMP04.dbf'            
   size 2000M autoextend on;

I found the solution to this. There is a temporary tablespace called TEMP which is used internally by database for operations like distinct, joins,etc. Since my query(which has 4 joins) fetches almost 50 million records the TEMP tablespace does not have that much space to occupy all data. Hence the query fails even though my tablespace has free space.So, after increasing the size of TEMP tablespace the issue was resolved. Hope this helps someone with the same issue. Thanks :)