Tracking a weakening trend in overseas markets, nickel prices fell by Rs 12.50 to Rs 1205.70 per kg in futures trade today.
Fall in demand from alloy makers in the spot market also influenced the nickel futures prices.
At the Multi Commodity Exchange, nickel for delivery in April fell by Rs 12.50, or 1.03 per cent, to Rs 1,205.70 per kg, with a business turnover of five lots.
Likewise, the metal for delivery in March lost Rs 12.40, or 1.02 per cent, to Rs 1,197.60 per kg, with an open interest of two lots.
Analysts said besides a weakening trend at London Metal Exchange, subdued demand from alloy maker in the spot market mainly led to the decline in nickel futures prices.
Meanwhile, nickel dropped 0.9 per cent to $26,500 a metric tonne at London Metal Exchange.