Question

how did muni understand that the foreigner was talking about the horse?

Answer 1

When Muni tried to back out from the conversation, the foreigner stopped him and asked him if the horse statue was his. Muni followed the man's hand and eyes and understood that the reference was to the horse. Though the linguistic barrier was still there, Muni understood that the reference was being made to the Horse and not to the mutilated body.
Thanks !!

Answer 2

From the first moment the foreigner was talking about the horse but the old man eas not able to get of what actually the foreigner was speking so now the foreigner pinioned munis back towards the horse and muni guessed that he he was speaking about the horse