NEW YORK - The Indiana Pacers put in a strong defensive performance to grind out an 81-76 home victory over the Houston Rockets, who welcomed back Tracy McGrady from a seven-game layoff due to a sore back.

Houston Rockets guard Tracy McGrady brings up the ball against the Charlotte Bobcats during the first quarter of NBA basketball action in Charlotte, December 8, 2006. [Reuters]

Tuesday's defeat was Houston's third in four games and a rusty McGrady offset a team-high 19 points with several costly turnovers as the Rockets struggled without injured Chinese center Yao Ming.

"I was fatigued down the stretch," McGrady said on the Rockets Web site. "I was nervous going into tonight's game wondering whether or not the injury was going to flare up.

"But right now, I feel just fatigued. When I get into game shape that will help me get rid of some of those turnovers like I had at the end.

"I pretty much cost us this game tonight."

Houston will need McGrady to return to his all-star form if the Rockets are to overcome the absence of Yao, who is expected to be out for six weeks after fracturing a bone in his right knee against the Los Angeles Clippers on Saturday.

The Pacers, who were missing their leading scorer and rebounder Jermaine O'Neal due to the flu, were led by a 23-point, 14-rebound effort from Al Harrington while Jamaal Tinsley chipped in with 17 points.

Jeff Foster had just one point but was a menace on the boards for the Pacers, pulling down 16 rebounds.

Even without Yao and McGrady operating at less than full fitness, the Rockets had a chance to pull out a win after they cut the Pacers lead to 78-76 with 16 seconds to play.

But the rally stalled when Darrell Armstrong hit a pair of clutch free throws in the final seconds to seal the win.

*Allen Iverson celebrated his first win in a Nuggets jersey collecting the double-double with 28 points and 13 assists as Denver topped the Boston Celtics 116-105.

*Shawn Marion hit for 23 points and Leandro Barbosa added 22 as the Suns quickly returned to their winning ways, dumping the Portland Trail Blazers 110-87 in Phoenix.