Nickel futures prices declined by 0.5% to Rs 996 per kg today largely in tandem with a weakening trend in base metals overseas.
Subdued demand from alloy-makers in the domestic spot market also weighed on nickel futures prices.
At the Multi Commodity Exchange, nickel for delivery in January dropped by Rs 5, or 0.5%, to Rs 996 per kg, with a trading volume of 1,874 lots.
February nickel shed Rs 4.90 to Rs 1,002 per kg, with an open interest of 165 lots.
Globally, nickel dropped as much as 1.3% to $18,650 per tonne at the London Metal Exchange (LME).
Market analysts said weakness in base metals overseas on concern that the prevailing European sovereign-debt crisis may slow global economic growth and damp the demand led to the fall in nickel futures prices here.
In addition, sluggish demand from alloy-makers at the domestic spot markets also put pressure on the metal prices, they said.