The IT sector's Q3 results, due soon, have aroused high expectations, particularly from leaders like Infosys, Wipro and Satyam. The bullishness is largely on account of the last two consecutive quarters of good performance.

Analysts feel that with cost cutting in the west continuing unabated, the Indian IT sector will continue to receive a steady, if not increasing flow of orders, enabling companies to consolidate their earnings. They point to the higher recruitment over the last two quarters by IT companies as a reliable indicator of volume growth.

The earnings of the larger IT companies are expected to register a healthy year-on-year revenue growth of between 25-35 per cent and profits around 25%. The second-quarter results of leading tech firms indicated that most companies increased full-year targets, thereby suggesting better traction in the second half.