Falling Rupee, Rising Profits— “IT’s” Sweet Spot! | Quantum’s Tipping Point? Microsoft Thinks So
It's Friday, February 21st, 2025. This is Nelson John, let's get started.
Your daily cup of coffee is set to become more expensive. Global coffee prices have surged due to supply shortages in major producing countries like Brazil and Vietnam. Brazil faces its worst drought in over four decades, severely impacting coffee yields. Similarly, Vietnam has been hit by typhoons and erratic rainfall, disrupting harvests and lowering bean quality. These challenges have pushed Robusta futures to a record high of $5,849 per tonne, with Arabica prices rising about 70% in 2024. In India, coffee consumption is steadily rising, making price hikes more impactful than ever, reports Suneera Tandon. Specialty coffee chains like Blue Tokai have already increased prices and may implement further hikes. Packaged coffee brands are also feeling the squeeze, with the Indian Coffee Roasters’ Association announcing a ₹200 per kilo hike in powdered Arabica and Robusta. Major brands like Nestlé, which sells Nescafé, acknowledge the impact of skyrocketing coffee costs, with coffee prices up 75% year-on-year. While some chains strive to avoid passing the burden onto consumers, the sustained rise in global coffee prices makes it challenging to absorb the increased costs. As a result, your morning brew is likely to see a price increase in the near future.
Google is finalizing plans to open its first physical retail stores outside the U.S., targeting India as the launchpad. The tech giant is in advanced stages of selecting locations in New Delhi and Mumbai, with stores expected to span approximately 15,000 square feet and potentially open within six months. This strategic move aims to emulate Apple’s successful retail approach, enhancing Google’s presence in India’s premium smartphone market. Currently, Apple holds a 55% share of this segment, while Google’s Pixel commands about 2%. By establishing these stores, Google seeks to provide direct customer engagement and bolster its market position. The company has committed $10 billion to India’s growth, underscoring the country’s significance in its global strategy. While Bengaluru was considered, the focus remains on New Delhi and Mumbai for the initial rollout. This development aligns with Google’s broader efforts to expand its footprint in key international markets.
Microsoft has unveiled Majorana 1, (MayoRANA) a breakthrough quantum chip that could bring industrial-scale quantum computing within years, not decades. Built with an innovative material called a topoconductor, this chip is designed to scale up to a million qubits on a single processor—potentially transforming computing as we know it. Unlike classical computers, which process information in binary (0s and 1s), quantum computers leverage qubits, which can exist in multiple states at once. This enables them to perform complex calculations exponentially faster, with potential applications in AI, financial modeling, drug discovery, and climate research. Microsoft’s approach relies on Majorana particles, a unique type of theoretical particle that could make quantum computing more stable and scalable. While tech giants like Google and IBM have also made strides in quantum computing, Microsoft’s announcement signals that commercial quantum applications could be closer than anticipated. With this breakthrough, the race to harness quantum power is accelerating, bringing us one step closer to solving problems beyond the reach of today’s computers.
The Indian IT sector may finally be seeing a turnaround, thanks to the weakening rupee. The currency recently hit an all-time low of 87.57 against the US dollar, declining by 1.3% so far in 2025. While this spells trouble for importers, IT firms—being major exporters—stand to gain as a weaker rupee boosts revenue and profit margins. Analysts at Jefferies highlight companies like LTIMindtree, Wipro, Sagility India, and Coforge as key beneficiaries due to their high exposure to the dollar, euro, and pound. Jefferies has already raised its earnings estimates for IT stocks by 2-5%, predicting they could once again outperform the broader Nifty index, as they’ve done in previous periods of rupee depreciation. Beyond currency movements, there are other positive signs. US banks are ramping up technology spending, hitting a record $9.5 billion last quarter. Additionally, demand for AI and GenAI-driven services is rising, with Indian IT firms actively investing in these areas. However, challenges remain. Uncertainty over US Fed rate cuts and potential trade tensions could impact recovery. While revenue growth is expected to pick up in FY26, valuations must stay reasonable as the sector navigates evolving global dynamics.
When switching jobs, you probably focus on transferring or withdrawing your provident fund (PF), assuming all your savings are covered. But what if part of your money was stuck—unclaimed and inaccessible? That’s what happened to Mr. A. While he successfully withdrew his PF, his Employees’ Pension Scheme (EPS) contributions remained unmerged. Without linking past EPS accounts, his withdrawal request was denied. Unlike PF, EPS doesn’t transfer automatically—it requires an extra step that many employees overlook. Here’s the rule: Employers contribute 8.33% of your salary to EPS. If you’ve worked with both private PF trusts (exempt) and EPFO-managed (non-exempt) employers, your pension funds could be scattered. To withdraw or claim benefits, EPS must be transferred and merged. If you’ve worked for less than 10 years, you can withdraw your EPS—but only if it’s properly linked. Cross the 10-year mark, and withdrawal isn’t an option. Instead, you’ll need a pension scheme certificate to claim benefits at retirement. To avoid complications, always transfer EPS when changing jobs. Staying proactive ensures you don’t lose your hard-earned pension savings! Read Aparajita Sharma’s detailed report on this in today’s Mint Money.