The blue chip FTSE 100 index was down 0.8% at 7,281.58 points by 0908 GMT, in line with the broader negative European market.
Standard gold (99.5 purity) rose by Rs 160 to end at Rs 28,905 per 10 grams as against last Friday's closing level of Rs 28,745.
Leading bourses BSE and NSE will conduct mock trading sessions on Saturday to test system and software related to trading and risk management.
RBI is likely to opt for status quo despite the Mar 2017 inflation number being much below the targeted level at next month's policy review, said analysts.
Britain's BT has been fined a record 42 million pounds by the regulator for failing to install high-speed lines for businesses fast enough.
Jaitley introduced in Lok Sabha four bills on Goods and Services Tax, providing for a maximum GST rate of 40 per cent.
BEML said it has won a Rs 1,421-crore contract from Bangalore Metro Rail Corporation (BMRCL) for supply of metro cars.
Negative global cues and heavy selling pressure witnessed in metal, automobile, and healthcare stocks subdued the Indian equity markets.
Shares of Reliance Industries ended 3 per cent lower, wiping out Rs 12,488 cr from its market valuation.