You can inspect the current controller name and action as detailed in this post and use that information in your layout to choose which element should be "active".
Or in a simple application another common way to do this is to use the ViewBag and set a property with the name of the current page.
In your controller method include the following.
ViewBag.CurrentPageName = "HomePage";
Your Razor (MVC3+) view code can consume this information and set the appropriate class on an element.
@{
string pageName = ViewBag.CurrentPageName ?? "Unknown";
}
if(pageName == "HomePage"){
//Output your DOM element with the appropriate class name for the "active" link.
}
OR
<a href="#" class="@(pageName == "HomePage" ? "active" : string.Empty)>Home Page</a>
For MVC2 and older you'll need to use TempData, but the concept is similar.