Sensex hits nearly 3-wk high in absence of foreign selling pressure

MUMBAI (Reuters) - India's share markets hit their highest level in nearly three weeks on Wednesday in the absence of foreign selling pressure ahead of year-end holidays, and following overnight gains on Wall Street after data showed the U.S. economy grew at a healthy clip in the third quarter.

Foreign investors, who have been net buyers so far this year, have sold about $689 million worth of equities this month.

With little less than 24 percent of ownership of Indian shares, their absence has reduced selling pressure on domestic markets, according to analysts.

"Generally FIIs have been sellers, their absence has given the market reason to be steady to high," said Deven Choksey, managing director at KR Choksey Securities.

"Only few stocks are giving the market some kind of rally or thrust, but fundamentals have not changed".

Wall Street rallied across the board on Tuesday after the U.S. Commerce Department said gross domestic product grew at a 2.0 percent annual pace, instead of the 2.1 percent rate reported last month.

The broader Nifty was 1 percent higher at 1.56 p.m. on Wednesday and the benchmark BSE Sensex was up 1.1 percent.

Earlier in the session, both indexes hit their highest level since Dec. 3.

All sectors were trading in the green, led by NSE heavyweight Reliance Industries with a gain of 1.85 percent.

Sun Pharmaceutical Industries rose 3.2 percent after brokerage Kotak said the U.S. FDA warning letter over its Halol plant did not highlight major data integrity issues.

Meanwhile, market debutants Alkem Laboratories and Dr Lal PathLabs opened 31 percent higher each.

Indian markets will be closed on Friday for Christmas.

($1 = 66.2050 Indian rupees)

(Reporting by Karen Rebelo in Mumbai; Editing by Subhranshu Sahu)