Mail is getting flagged as "read"

Mail is getting flagged as "read"

I setup Zoho Mail so I can send mail from within Recruit. 
We are using MS Exchange SaaS / Office 360 hosted exchange server accounts. 
I can see, send and receive e-mails now. 
But all my incoming mail gets automatically flagged as "read", even though i have not read it in either Outlook or any of the Zoho products. 

Please help?