Market analysts have predicted that the IT companies are likely to post modest growth in their fourth quarter earnings. The increased overseas demand has encouraged the frontline software exporting companies of the country but on the other hand, a strong rupee and hike in wages is going to affect the profit margins of the technology companies.

Revenue growth is estimated to be 3-5% range in US dollar terms. Brokerage firm Edelweiss has informed that there may be a modest rise in pricing but any earnings upgrade is having too less chance to happen.

According to an analysis of earnings forecast by brokerages, there will be an average growth of 4-5.5% for Indian IT firms in their fourth quarter earning. Infosys, TCS and Wipro are expected to be the top performers while Technologies and Patni Computers are projected to post a lethargic volume growth.

However, Unicon Financial have predicted that the forth quarter of Fiscal year 2010 is going to be one of the strongest quarters for IT sector in India. IT biggies are going to lead the way by posting some remarkable volume growth.