Another way is...
Take on Lable outside of the GridView & make it visible false..
If u bind the GridView with DS then check the number row count in the dataset..
Like dsRecords.
if(dsRecords.Table[0].Rows.Count > 0)
{
//Bind GridView
}
else
{
lblNoRecord.Text = "No records found.";
lblNoRecord.Visible = true;
GridView1.Visible = false;
}