Mexico stocks fall sharply on drop in Femsa, Modelo

MEXICO CITY Jan 31 (Reuters) - Mexican stocks fell sharply as bottler Femsa slumped off a record high after Morgan Stanley cut back its recommendation on the stock and brewer Modelo tumbled to a seven-month low.

The benchmark IPC stock index fell 1 percent, heading for its biggest one-day drop since mid-November.

Modelo, the maker of Corona beer, fell 7 percent after the U.S. Justice Department filed a lawsuit seeking to stop Anheuser-Busch Inbev SA from buying the half of Modelo that it does not already own.