Goldman Sachs tactically lowered Indian equities to “neutral” from “overweight” on Tuesday, as the country’s slowing economic growth weighs on corporate earnings, amid record foreign outflows from domestic markets.

The brokerage also cut its 12-month target for the blue-chip Nifty 50 index to 27,000 from 27,500, saying that markets could ‘time correct’ over the next three to six months.

The fresh target, however, still represents a more than 10% upside from Tuesday’s close of 24,472.10.

“While we believe the structural positive case for India remains intact, economic growth is cyclically slowing down across many pockets,” Goldman strategists wrote in a note published Tuesday.

High valuations and less supportive domestic and external factors, including the Middle East tensions, could keep markets range-bound in the near term, Goldman said, although a large price correction is unlikely, given strong domestic inflows into equities.

In the midst of lacklustre September-quarter corporate earnings, foreign fund outflows from domestic equities have reached a record monthly high so far in October.

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Investors have shifted their focus away from richly-valued local stocks to China after Beijing unveiled stimulus measures to reinvigorate its sputtering economy.

The Nifty 50 index has lost 7% since the record high it hit on Sept. 27. Goldman had upgraded Indian equities to “outperform” last year, citing strong economic growth prospects, steady domestic mutual fund inflows, and a potential supply chain shift from China.