Dados de amostra
create table sometable([group] varchar(10), id int, somedata int)
insert sometable select 'Horses', 9, 11
insert sometable select 'chickens', 19, 121
insert sometable select 'Horses', 29, 123
insert sometable select 'chickens', 49, 124
insert sometable select 'Cows', 98, 1
insert sometable select 'Horses', 99, 2
Consulta
select
Record = ROW_NUMBER() over (order by [Group], id),
[Group],
GroupSequence = DENSE_RANK() over (order by [Group])
from sometable
Resultado
Record Group GroupSequence
-------------------- ---------- --------------------
1 chickens 1
2 chickens 1
3 Cows 2
4 Horses 3
5 Horses 3
6 Horses 3