Yes, you just set up Internet Sharing the same as if you had an Internet connection on one of your non-Wi-Fi interfaces. You don't actually have to have a working Internet connection on the interface you use as the "From" (that's "From" as in, "Share your connection from:") interface. You just need to pick a non-Wi-Fi interface as the "From" interface so you can use your Wi-Fi interface as the "To" (that's "To" as in "To computers using:") interface.
Just like when you've used Internet sharing before, this will put your Wi-Fi interface into "Access Point" mode and start publishing whatever network name you tell it to publish. It'll also start up a DHCP server process to assign private IP addresses to any devices that join the Wi-Fi network it's creating.
The devices that join the Wi-Fi network won't be able to get to the Internet unless you bring up an Internet connection on whatever interface you used as your "From" interface.
1This is not true in Mountain Lion. I am quite certain that previously I could share the network connection as you explained - picking ethernet and sharing it via WiFi. That worked even without any cable connected to the Ethernet port.
It seems that Mountain Lion actually checks for network connectivity (active link on ethernet port) and disables the hotspot as soon as the connectivity drops.
I checked this on two different macbooks and I would be more than happy to hear for trick to get around this limitation. Create network does not achieve the same goal as it doesn't come with DHCP. – stricjux – 2013-08-12T13:32:34.120