The leader was Yusaku Miyazoto of Japan with rounds of 67 and 64. Kapur totalled five-under 137 for two days.
Three other Indians, Shubhankar Sharma (70-68) in Tied19th, Jyoti Randhawa (70-69) in Tied-29th and Rahil Gangjee (69-73) in Tied-40th also made the cut alongwith Daniel Chopra (67-71), who with Shubhankar is Tied-19th.
However six others missed the cut. Three Indians, Rashid Khan (71-73), S Chikkrangappa (73-71), Chiragh Kumar (68-76) missed the cut by one shot, while Gaganjeet Bhullar (73-73), Mukesh Kumar (71-78) and Jeev Milkha Singh (75-75) also exited early.
Japan's Yusaku Miyazato of Japan fired a seven-under 64 to seize the early lead in the on-going second round.
More From This Section
Miyazoto, 36, remained bogey-free after 36 holes as he led on 11-under 131, three shots ahead of Keith Horne of South Africa at the event sanctioned by the Asian Tour and Japan Golf Tour.
Miguel Tabuena of the Philippines posted a 69 to tie in third place alongside Masahiro Kawamura, who shot a solid 65 to trail the leader by five shots at the Pun Hlaing Golf Club.
Miyazato is the older brother to LPGA player Ai, while 45-year-old Horne, an Asian Tour regular, is searching for his first victory on the Asian Tour after playing in 136 tournaments in the region since 2003.