The metal for the May contract lost Rs 10, or 0.90% to Rs 1,098 per kg, with a trade volume of just one lot at the MCX.
The nickel dropped by 0.4% to $24,300 a metric tonne at the LME.
Moreover, the decline in the demand from alloy-makers also influenced the prices of the metal.
Some of the major features of the world nickel market are that it is characterized by rising demand and constrained supply and it is more than 54% if world total supply comes from only five companies.
The global nickel consumption is growing by an average 3.1 per cent a year.
Major producers of Nickel are Russia, followed by Australia, Canada, New Caledonia and Indonesia, which represents over 65% of total world production.
Nickel finds its usage in various industries like engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging, Batteries etc.