Optimum hedging tool of portfolio management using artificial intelligence and cloud computing in Indian stock market Nitasha Soni Dr. Tapas Kumar Research Scholar, Lingaya's University Professor, Lingaya's University, Nachauli, Jasana Road, Old Faridabad, Nachauli, Jasana Road, Old Faridabad, Nacholi, Haryana 121002 Nacholi, Haryana 121002 Abstract: Streamlining of supporting devices is one of the worry territories among financial computing specialists. Optimizations of hedging tools among these tools are second concern areas among specialists or investors. Many artificial intelligence (AI) tools are available for the hedging in stock market. Markowitz and other artificial intelligence (AI) modelsare extremely helpful in the portfolio management and predictive analysis of the stock market. Integration of data through cloud has opened new avenue in the stock market. Optimization of hedging of risk taken during portfolio creation and management is relatively untouched in the era of big data with the extensive use of artificial intelligence (AI) models. Genetic algorithms are more suitable to calculate exact risk during portfolio management process and that’s lead to the hedging. Internet of things (IoT) will provide integrated data for the information flow during analysis. In this paper we will discuss best suitability of artificial intelligence (AI) hedging tool in the era of Internet of things (IoT)in the stock market. It also discusses the model for trading pattern discovery system of portfolio hedging by using integration of BIG data with Genetic algorithm (GA). Keywords: artificial intelligence (AI), Markowitz model, Genetic algorithm, Internet of things (IoT), stock market, portfolio management I. INTRODUCTION: Portfolio administration is the most run of the mill work in the life of the any financial specialist. Distribution of venture instruments to minimize hazard with legitimate return requires tending to numerous worries. Counterfeit consciousness (AI) instruments like Markowitz model substantiated itself as one of the time tried techniques to foresee the business sector and additionally to make portfolio. Importance of these models in the time of BIG information and distributed computing [10, 11] is yet to test in the long haul amid most confused circumstance. Presently markets are not needy upon just value changes but rather additionally association of information. On the premise of seven suppositions, Harry Markowitz built up another model of portfolio administration with securities. He considered the zone of arched part of the figure and securities lies on the raised region is considered as ideal in for the portfolio administration. Markowitz raised range model depended on the supposition yet over the long haul his value model has restricted centrality in the territory. Sliding window strategy for portfolio administration is additionally considered as profitable apparatus by considering costs of securities. According to sliding window method, input layer is demoted by International Journal of Computer Science and Information Security (IJCSIS), Vol. 14, No. 11, November 2016 1013 https://sites.google.com/site/ijcsis/ ISSN 1947-5500