Luis Scola led Houston with a career-high 25 points. Carl Landry and Rafer Alston each scored 17 points for the Rockets, who had won three straight.
Houston center Yao Ming left the game with a sore right knee and did not play in the second half. He missed much of the second quarter while sitting on the bench with an ice pack on the knee. He returned later in the quarter, but did not join his team to start the second half.
Houston already was missing Tracy McGrady and Ron Artest because of injuries. Artest missed his 13th game of the season because a bone bruise in his right ankle. McGrady sat out his 16th game of the season because of a sore left knee.
Indiana outscored the Rockets 33-22 at the free-throw line and forced 20 turnovers.
The Pacers led 50-40 at halftime and 72-65 at the end of the third quarter.
Houston cut it to 79-75 early in the fourth quarter on Aaron Brooks' basket, but the Pacers responded with a 7-2 run. Ford's 3-point play put the Pacers ahead 86-77.
Minutes later, Granger hit a 3-pointer with Landry in his face as the shot clock wound down to make it 91-81 midway through the period.
Scola scored on a baseline spin move and finger roll with 1:44 left and trimmed Indiana's lead to seven at 97-92 with 1:44 to play. Von Wafer's 3-pointer with 26 seconds left cut it to 99-97.Scola fouled out on Indiana's next possession, and Jack took advantage by making two free throws with 25.5 seconds to play to push the Pacers' lead back to four.