The meaning of this...
Syntax
SET NOCOUNT { ON | OFF }When SET NOCOUNT is ON, the count (indicating the number of rows affected by a Transact-SQL statement) is not returned.
When SET NOCOUNT is OFF, the count is returned.
The @@ROWCOUNT function is updated even when SET NOCOUNT is ON.

ManishPosted Jun 1, 2010, 5:59 AM
While executing the stored procedures there is no need for this (number of rows affected by a Transact-SQL statement) information to be passed back to the client. Hence its better to remove this extra overhead from the stored procedure , it can greatly improve overall performance for your database and application. Thanks Manish