Here the FIIs exit causes the fall.. i.e. the exit precedes the fall. I guess the same holds true for other emerging markets.
Now, SMbhai, with you, does closing one trade mean opening up another immediately? I guess not. Same with the institutions I suppose. Just because they exit one market (or, more likely, one segment of one market) does not mean that they have to utilize the money immediately elsewhere. Being "in the money" is a position too, as mentioned in this forum in many places.
Shayad mai chhote mu, badi baat kar raha hu.... E&OE
Now, SMbhai, with you, does closing one trade mean opening up another immediately? I guess not. Same with the institutions I suppose. Just because they exit one market (or, more likely, one segment of one market) does not mean that they have to utilize the money immediately elsewhere. Being "in the money" is a position too, as mentioned in this forum in many places.
Shayad mai chhote mu, badi baat kar raha hu.... E&OE