RPT-BUY OR SELL-Is Reliance Industries' underperformance a blip?

(Repeats story issued late on Friday)

* Ambani gas dispute, weak refining margins cloud outlook

* Long-term prospects bright, drop may be buying opportunity (For more Reuters BUY OR SELLs, click [BUYSELL/])

By Pratish Narayanan and Ami Shah

MUMBAI, Nov 13 (Reuters) - Shares of India's biggest listed company Reliance Industries (RELI.BO: Quote, Profile, Research) are down since mid-June, compared with the rising benchmark index, in an unusual occurrence for a firm seen as a bellwether for the country's stock market.

Investors have been worried about a gas-pricing dispute between the company, led by billionaire Mukesh Ambani, and Reliance Natural (RENR.BO: Quote, Profile, Research) that is controlled by his estranged younger brother Anil. The dispute is being heard by India's top court. [ID:nBOM489932]

While an unfavourable ruling from a lower court in June has helped knock 11 percent of its market value to about $75 billion over the past five months, Reliance shares have jumped 15 percent over the past week on rumours of a settlement between the Ambani siblings even though the brothers have ruled out a patch-up.

Is the tide turning for investors in the refining, petrochemicals, and oil and gas exploration giant?

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