Suppose, if I have been given this: $\forall x \in A(P(x))$ and $\exists y \in A(Q(y))$.
Now from $\forall x \in A(P(x))$ using universal instantiation, I get $P(c)$ where $c$ is an arbitrary element in $A$. Now my doubt is, if using $\exists y \in A(Q(y))$, can I conclude $Q(c)$ ?. My reasoning says yes, because $c$ is an arbitrary element in $A$ and $y \in A$. Is this type of instantiation from universal to existential has a special name ?
No, you have to go the other way around: from $\exists y\in A(Q(y))$ we instantiate to get a $c$ with $Q(c)$; we now conclude that $P(c)$ holds, because $\forall x\in A(P(c))$.
One way to picture this is as a game. You're trying to show that a statement - say, $\exists x\in A(P(x) \wedge Q(x))$ - is true, and your opponent (me) is trying to thwart you. Your example goes as follows:
You: "I know that $\forall x\in A(P(x))$. Give me some $x\in A$ such that $P(x)$."
Me: "Sure, have this thing $c$. I promise you $P(c)$ holds."
You: "I know that there is some $x$ with $Q(x)$. I claim $Q(c)$ holds, in particular, so I've found an $x$ with $P(x)\wedge Q(x)$."
Me: "Haha, I chose a $c$ that doesn't satisfy $Q(c)$! You have made an incorrect deduction, so you lose."
The right way to approach this is the opposite:
You: "I know $\exists x\in A(Q(x))$. Give me some $x\in A$ with $Q(x)$."
Me: "Sure, have this thing $c$. I promise you $Q(c)$ holds."
You: "Well, I know that $\forall x\in A(P(x))$ - so in particular, $P(c)$. So I have $P(c)\wedge Q(c)$."
Me: "Curses!"
The general name for this sort of thing is game semantics. I find it a very helpful framework for understanding the (in)validity of logical arguments (and many other things besides).