Joshi, who is still looking for his pro win outside India, carded 70 to go with his 67 from the first round while Kapur's second round card read 67.
Kapur won three times in 2017 and is looking at another solid year in 2018.
The other Indians ensuring a stay for the weekend were Jyoti Randhawa (67-71) and Arjun Atwal (67-71) in Tied-37th place, while Gaganjeet Bhullar (68-71) and Shubhankar Sharma (70-69) were Tied-51st. SSP Chawrasia
Thai teenager Phachara Khongwatmai charged into contention at the halfway stage after shooting a sparkling seven-under-par 65 on Friday.
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The 18-year-old, whose name Phachara means diamond in Thai, marked his card with seven birdies as he shared the lead with Italys Nino Bertasio (65) on 11-under-par 133 on a low scoring day at the Saujana Golf and Country Club.
Starting from the 10th, Kapurs 67 had an adventurous run midway through the round, as he had four birdies from 16th to 18th and then first followed by bogeys on second and third. In all he had seven birdies against two bogeys.
A red-hot Lee Westwood of England fired 11 birdies against one bogey for a stunning 62 to lie a shot back in third place alongside Japanese star and world number 43 Yuta Ikeda (64), Marc Warren (66) and overnight leader Chris Paisley (69) at the event sanctioned by the Asian Tour and European Tour.
Westwood continued his affinity with Asia where he has won nine times including the Malaysian Open in 1997 at Saujana. He is in position again to win at the course where he was a former touring professional from 1996 to 1999.