The Presbyterian Church on Friday became the most prominent religious group in the US to endorse divestment as a protest against Israeli policies toward Palestinians, voting to sell church stock in three companies whose products Israel uses in the occupied territories.

The church's General Assembly, meeting in Detroit, voted by 310-303 to sell stock in Caterpillar, Hewlett-Packard and Motorola Solutions. Two years ago, the assembly rejected a similar divestment proposal by two votes.

The American Jewish Committee, a policy and advocacy group based in New York, said the vote was "driven by hatred of Israel". But Heath Rada, moderator for the church meeting, said immediately after the vote that "in no way is this a reflection of our lack of love for our Jewish brothers and sisters”.

The decision is expected to reverberate beyond the 1.8 million-member church. It comes amid discouragement over failed peace talks that have left activists desperate for a way to effect change and as the broader movement known as BDS (boycott, divestment and sanctions) has gained some momentum in the US, Israel's closest and most important ally.

Presbyterians who advocated for divestment insisted their action was not part of the broader boycott movement. Israeli officials, along with many American Jewish groups, denounced the campaign as an attempt to delegitimise the Jewish state.

Separately, the assembly also voted to re-examine its support for a two-state solution.

In a statement on its Facebook page, the Israeli Embassy in Washington denounced the Presbyterian Church resolution as "shameful”.

"Voting for symbolic measures marginalises and removes its ability to be a constructive partner to promote peace in the Middle East," the statement said.

Omar Barghouti, a co-founder of the BDS movement, praised the vote as a "sweet victory for human rights”. He said Presbyterian supporters of Palestinian rights have introduced divestment into the US mainstream and have given Palestinians "real hope in the face of the relentless and intensifying cruelty of Israel's regime of occupation, settler colonialism and apartheid”.

Representatives of the Presbyterian socially responsible investment arm told the national meeting in Detroit that their efforts to lobby the three companies for change had failed.

Carol Hylkema of the Israel/Palestine Mission Network, a Presbyterian group that advocates for Palestinians and spearheaded the drive for divestment, said their action was modelled on the divestment movement to end apartheid in South Africa. The 2012 assembly had endorsed a boycott of Israeli products made in the Palestinian territories.

"Because we are a historical peacemaking church, what we have done is, we have stood up for nonviolent means of resistance to oppression and we have sent a clear message to a struggling society that we support their efforts to resist in a nonviolent way the oppression being thrust upon them," said the Reverend Jeffrey DeYoe, of the Israel/Palestine Mission Network.

Two smaller US religious groups have divested in protest of Israeli policies: the Friends Fiduciary Corp, which manages assets for US Quakers, and the Mennonite Central Committee. Last week, the pension board of the United Methodist Church, the largest mainline Protestant group in the US, revealed plans to sell holdings worth about $110,000 in G4S, which provides security equipment and has contracts with Israel's prison system. However, the United Methodist Church had rejected church-wide divestment.

Motorola Solutions said in a statement that the company follows the law and its own policies that address human rights. Hewlett-Packard said its checkpoints for Palestinians were developed to expedite passage "in a secure environment, enabling people to get to their place of work or to carry out their business in a faster and safer way”. Caterpillar has said it does not sell equipment to Israel, just to the US government.

A church spokeswoman estimated the value of Presbyterian holdings in the companies at $21m.

