D-string on near horizon geometries and infinite conformal symmetry

We show that the symmetries of effective D-string actions in constant dilaton backgrounds are directly related to homothetic motions of the background metric. In presence of such motions, there are infinitely many nonlinearly realized rigid symmetries forming a loop (or loop like) algebra. Near horizon (AdS) D3 and D1+D5 backgrounds are discussed in detail and shown to provide 2d interacting field theories with infinite conformal symmetry.