I am very much new to the Continous Integration. Could anyone please let me know whether we could build a website using MSbuild?
Yes, you can - even with a "website".
What you need to do is add the "Web Deployment Project" and set it up so it will grab all the files from the website, compile them, and using something like WiX, you can create an installer for the files to be able to easily deploy your web site and all its files needed to a customer's computer.
Marc