Mumbai, Mar 8 (IANS): Another spike in global crude oil prices on the back of new sanctions banning Russian energy imports is expected to hammer the Indian equity markets further.

On Tuesday evening, the Brent Crude oil price again reached $130 per barrel on expectations that western countries might ban Russian energy imports.

Besides, the Russia-Ukraine conflict pushed gold prices to Rs 55,000 per 10-gram.

Sanctions on Russia, which is a major producer of Crude oil and gold, are expected to reduce their global supply.

The crisis has also accelerated FII selling in the domestic market on the back of inflationary fears. The FIIs net sold Rs 8,142.60 crore worth of equities.

At present, India imports 85 per cent of its Crude oil needs.

It is estimated that high Crude oil prices will raise prices of domestic transportation fuels in the range of Rs 10 to Rs 32 per litre, thereby unleashing an overall inflationary trend.

"Both gold and Crude prices were up during India trading time, but have risen a bit more later. The US is poised to ban import of oil from Russia. About 8 per cent of US oil and refined product imports come from Russia," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Such an action could theoretically send oil prices soaring. However, oil prices have risen and stock prices have fallen over the past few days partly in anticipation of such a move. Hence, the impact on stock markets on Wednesday could be limited," Jasani added.

According to Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services: "Any negative news from the conflict will hamper market sentiments.

"Our markets have mirrored global trends and any further rise in Crude oil prices will be negative. The situation is dynamic and needs constant monitoring."