Sandhu shot a second successive 71 and finished in a tie for 71st at two-under 142 and missed out by one shot. Rai (71-73) was even par and ended 94th as the cut came at three-under 141.
Thailand's Supakorn Utaipat continued his dream run at the USD 500,000 King's Cup when he signed for a five-under-par 67 to take the second round lead on Friday.
In what is only his second start on the Asian Tour, the 22-year-old outshone the illustrious names by compiling a two-day total of 13-under-par 131 to take a two-shot advantage.
Singapore's Mardan Mamat carded a 70 to take a share of second place alongside England