UPDATE 1 — India's Tata Group stocks fall after SP Group unveils $2.6 billion stake sale plan

(Adds details throughout) Sept 18 (Reuters) — Shares of most Tata Group stocks fell on Friday, a day after Shapoorji Pallonji Group proposed selling a portion of its stake in holding company Tata Sons for at least 250 billion rupees ($2.61 billion). As of 9:40 a.m. IST, Tata Chemicals tumbled as much as 7.8%, while Tata Investment Corporation fell 3.9%. Tata Motors Passenger Vehicles dropped 2.6% and Tata Power lost 1.4%. Shares of Tata Steel were down 0.15%, Tata Motors fell 0.48% and Tata Elxsi slipped 1.09%, while Tata Capital rose 1.1%. The declines reversed some of the gains made by Tata Group stocks on Thursday, after Tata Sons reappointed N. Chandrasekaran as chairman for another five years and decided to consider a public listing. Tata Trusts on Thursday said that Shapoorji Pallonji Group, Tata Sons' second-largest shareholder, had proposed monetising a portion of its stake in the holding company. The proposal includes a share buyout in two tranches over 18 months that would yield proceeds of at least 250 billion rupees to the SP Group. (Reporting by Surbhi Misra in Bengaluru; Editing by Sonia Cheema) ((Surbhi.Misra@thomsonreuters.com | X: |;)