Data Mining

Data are any facts, numbers, or text that can be processed. Data analysis is to find relationships among the data objects and then perform the remaining analysis like; clustering, classification, or anomaly analysis. A cluster is a set of objects in which each object is closer to every other object, and an entire collection of clusters is referred as clustering. On review of the papers and journals, it was found that the investors are finding difficulty in selecting better performing company for investment. Hence the objective of the research work was set to develop the clusters of NIFTY companies for better investment. Price per earnings ratios were calculated for all the 50 NIFTY companies during years 2008-2009 & 2009-2010. The specimen calculated Price per earning ratios for Reliance power was 171.70 and clustering of companies under sector wise were made based on the financial ratio analysis and clustering analysis. It was found that all 50 NIFTY companies were clustered and distributed as 11, 21 & 18 numbers for the P/E ratio <10, P/E ratio between 10-20 & P/E ratios>20 respectively for the year 2008-09 and 03, 18 & 29 respectively for the year 2009-10. Based on results, an investor is suggested to select a company and sector from the list for better investment. The recommended company for investment is reliance power (power-generation and distribution sector), since this company performed well in the years 2008-09 and 2009-10