Will Hindalco, Bharti Airtel lead the next Nifty rally?

The fact that Nifty’s 1360-point rally since September 19 has been led by a small basket of stocks is very well known. Reliance Industries, the HDFC twins, ICICI Bank and Axis Bank have emerged as the drivers of this big Nifty gain since the announcement of the corporate tax cuts by finance minister Nirmala Sitharaman in September.

But there are indications that the basket is getting broader. A new set of stocks look set to join the rally and drive the benchmark index even higher if one goes by the increase in open interest positions. The open interest in Hindalco has seen a 63 per cent spike in the current series while that of Bharti Airtel, SBI and Infosys’ have risen by more than 55 per cent, data from exchanges show.