L&T, IRB Infra: Can National Monetisation Pipeline boost infra stocks?

Shares of IRB Infrastructure Developers jumped over 5 per cent, GMR Infrastructure added 2 per cent and Larsen & Toubro Ltd (LT) recovered following five days of bear hammering

Infrastructure and capital goods-related stocks witnessed buying in Tuesday's trade after the Finance Minister launched Rs 6 lakh crore asset monetisation plan on Monday, with an aim to fund the infrastructure projects over four years.

"For the government, the pipeline should provide enough time to complete the administrative groundwork necessary in advance to make the national monetisation policy (NMP) a success," wrote Sonal Varma, Nomura's chief economist for India and Asia ex-Japan in a coauthored note with Aurodeep Nandi.

The success of the NMP, analysts say, will come down to its implementation. A key risk in the brownfield project, according