Chennai, Aug 7 (IANS): Though the outcome of Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting may be dovish but with a hawkish undertone, investors need not be disappointed, said experts.

Investors should focus on sectors that offer growth and earnings prospects with several companies having to declare their first quarter results for this fiscal, they added.

Chief Economist, CARE Ratings, Rajani Sinha told IANS that RBI will follow a wait and watch policy and will not change the repo rate but the undertone will be hawkish.

Whatever it may be – a dovish outcome, hawkish undertone, the investors like a pleasant peacock dance or a bull run. Would that happen post MPC meet?

Even though inflation could remain elevated in July and August and if the El Nino pattern plays out in the latter half of the monsoon, this era of high inflation could continue till the end of this calendar, HDFC Securities' Head of Retail Research Deepak Jasani said .

"Oil prices globally have also started to inch up. However, we do not expect the RBI to jump the gun and resume rate hikes in its August meeting," he added.

Investors need not get disappointed with the dovish outcome of the MPC meeting and focus will remain on the rest of Q1 results and the global risk appetite that will determine the fund flows into India, Jasani said.

Geojit Financial Services' Chief Investment Strategist Dr. V.K. Vijayakumar said: "Investors should be focussed on the growth and earnings prospects of different sectors and companies within sectors. Banking, capital goods and autos are on strong wicket."

According to him, there is strong growth momentum in the economy now and the MPC is unlikely to do anything that upsets the growth apple cart.

The vegetable inflation that prevails now is seasonal and the monetary policy cannot do anything about it, he added.