By Atul Prakash
LONDON (Reuters) - Britain's top equity index steadied in sight of record highs on Tuesday, with a rally in global miner BHP Billiton (L:BLT) after results offsetting a sharp decline in aircraft parts supplier Meggitt (L:MGGT).
Meggitt fell 4.1 percent, the biggest faller in the FTSE 100 index (FTSE), with investors taking profits following a strong run after the aircraft parts supplier maintained its outlook for this year.
BHP Billiton rose 4.9 percent to become the top gainer in the benchmark index, after it flagged further belt tightening to withstand tough conditions and reported a 31 percent drop in half-year profit that beat market forecasts.
"The ability of the company to produce a strong set of numbers during a testing time for the commodities industry is why the market has so much confidence in BHP Billiton," David Madden, market analyst at IG said.
The blue-chip FTSE 100 index was up 0.07 percent at 6,917.07 points by 1134 GMT, just below its record high of 6,950.60 set in late December of 1999.
Thames Capital Markets' senior trader Gerren O'Neill expected the FTSE to eventually hit a record high of 7,000 points, but added it was hard to buy into the market at present, given lingering uncertainty over Greece's economic situation.
Greece sent a list of economic reform plans to European institutions and the International Monetary Fund that was "a valid starting point" for talks over its bailout, a source close to the European Commission said on Tuesday.
Housebuilders fell on worries of a rise in interest rates. Persimmon (L:PSN) and Taylor Wimpey (L:TW) fell 4 percent and 3 percent respectively after Bank of England policymaker Kristin Forbes said inflation risks could mean a rate hike in the near future.
"Another house builder brings with it another shiny set of numbers. 44 percent rise in full year profits, a good outlook with the general election hump the main blip on the horizon," Lewis Sturdy, dealer at London Capital Group said, referring to Persimmon.
"The recent house builder updates have read strong across the board. After hitting a post crisis high since the new year it is understandable to see some profit taking here."