It can depend on the context, but I would say not. Literally "niente" means "nothing" and "non c'è male" means "[there is] not bad". So, if someone asks you: "Come va?" or "Come stai? (how are you?); you can answer: "Non c'è male" or "Niente male"; but you can't answer "niente" alone, it makes no sense. On the other hand, if someone thanks you or also if he apologise you, you can answer: "Di niente" (not at all) or "Non c'è di che" (think nothing of it).

/niente/ when used alone sometimes has the same meaning of /niente di male/, like in /nothing bad happened/. /non c'e` male/ is sometimes used as an answer to: /come stai?/, with the meaning /Times are not bad for me/. /niente/ and /non c'e` male/ don't have a common meaning.

/Its does not matter/ is more properly translated with our expression: /non importa/.